HIGHLIGHTS
- According to the forecast of sales during the holiday, this year will be higher than last year.
- For retailers, however, a shortage of workers and Covid outbreaks in other parts of the world may make it harder to get items quickly to store shelves and consumers’ homes.
- Shoppers shouldn’t expect many drops this holiday season, as long shipping times, limited inventory at stores and labor shortages will drive prices even higher.
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Lack of goods for the festive season
Prices increased tenfold from a year ago due to a shortage of shipping containers. Since then, commodity prices have risen. Road transport has come to a halt due to labor shortages. Hundreds of thousands of seasonal workers are hired by UPS, Walmart, and many other companies during peak seasons. However, the problem of not having enough things for the impending holidays remains.
In the United States, Halloween frequently starts off the holiday season and a frenzy of purchasing. This year, the number of clients visiting the store has increased due to the vaccine, but only a few people can purchase the things they desire. New things have not yet arrived, and old goods frequently run out of size. Nike also reduced its sales forecast after Covid-19 forced the closure of its Vietnam manufacturing.
“A lot of orders are still on the way. Most of the items we have here and throughout the system are not many. So customers who want to have the right items have to hurry,” said Kevin, a door chain employee. Spirit New York said.
34th Street, one of New York’s busiest retail districts, is devoid of new arrivals; the stores are silently waiting. Because of the epidemic, several brands have closed due to a lack of customers, and customers are now facing a scarcity crisis. According to Mr. Jonathan Miller, CEO of Miller Samuel Real Estate Company: “Because the number of shoppers has unexpectedly decreased, several stores have had to close temporarily or permanently. The market is only getting started right now “.
Just over a week to Halloween and over 2 months to Christmas. In the face of a shortage of goods, each consumer is having their calculations when thinking about buying gifts for their loved ones.
Demand and prices soar
Year-end shopping is the biggest sale in America. However, 25% off signs are becoming rare on one of New York’s major shopping streets. Before the epidemic, consumers even saw a 50-70% discount, but now many stores say that they can not only reduce the price but also have to increase the price of scarce items.
Meanwhile, businesses are still trying to ensure they have enough stock to meet the anticipated surge in holiday demand. Almost every commodity, from consumer electronics to toys to sneakers, is being impacted in some way. Some retailers are adopting the strategy of hiring more airlines to try to avoid backlogs, but it adds to shipping costs. This is still a difficult problem for retailers in this period.
Van Anh
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