Are Supply Chain Problems Really Hampering Shopping During the 2021 Holidays?
Due to the supply chain problems associated with the pandemic, you should expect fewer bargains and depletion of stocks when you shop this year. But some retailers think it will get worse and are already telling their customers “ September is the new December ” and that they should start shopping now as some products may be very difficult to find in November and December. Here’s a look at why deficits are getting worse and which shopping categories are suffering the most.
Why is the supply chain problem getting worse?
The time it takes to send a box from Asia – the source of 40% of all goods imported by sea – has doubled since the start of the pandemic. The delays are linked to problems of all kinds, from labor shortages and factory closings due to COVID to historic weather as summer storms have temporarily closed ports from China to Louisiana.
The United States also faces a shortage of long-distance truck drivers; employment in this industry is still much lower than it was before the pandemic. According to Forbes , there is currently one qualified driver for every 9 vacancies. Freight railways also face labor and equipment shortages that create bottlenecks wherever railways converge. And the delivery by air? Air fares from Southeast Asia, already prohibitively expensive, have risen 24% over the past year.
Which products are most affected by supply chain problems?
- Microchip shortages are expected to limit consumer electronics shipments for the rest of the year , so don’t expect too many gadgets until Christmas. In fact, if you happen to see high-demand products like the PS5 or Nintendo Switch on the shelves or on the internet, grab them while you can. Plus, don’t expect to see the same number of deals or sales for these types of products this year – Black Friday 2021 may look very different than in years past.
- Meanwhile, book publishers are also grappling with paper shortages and delivery delays, which have already forced them to postpone some fall issues until 2022. As a result, retailers are encouraging consumers to buy their books at the beginning of the year, or to select older books that have already been shipped to stores.
- Toys are also a concern as retailers are already warning of a shortage of toys for Christmas. Toy giant Mattel has said it will also raise prices in the next few months, so it is best to shop early, especially for any toy that will be in high demand.
- Supply chain disruptions will also affect clothing. Apparel companies such as Adidas and Crocs have raised concerns about inventory, as have Nike, which may run out of shoes to sell by Christmas .
Bottom line
If you have special gifts or decorations on your holiday shopping lists, start looking for them now. Compared to the 2020 holiday season, inventory will be a much bigger issue, and retailers are already sounding the alarm that it may be difficult for them to keep enough items on hand to meet demand.