As increasing pressures build on global supply chains and peak shopping holidays on the horizon, there are still some huge challenges and choices that retailers face, with big decisions to make. With a combination of Brexit and Covid causing supply chain disruptions, retailers are faced with increased shipping costs and waiting times for products, paying surging prices for their products only to get lost or delayed.
As our retailers heavily depend and rely upon efficient supply chains to help deliver their products to consumers, it looks as though not only Black Friday but Christmas hang in the balance once again this year. And with supply chain constraints not set to subside until mid to late 2022, what will this do to our retailers? And how will our consumers suffer as a result?
The unsustainable pressures on supply chains needs to be tackled but despite attempts industry experts say it is far too late to resolve the bottlenecks in time for this year. And as an alternative, consumer unfriendly measures may have to come into effect, meaning retailers could stop selling certain lines or ranges, low margin items, and halting promotions on products that boost demand.
Consumers favourite holidays could also be disrupted. In 2020 retailers had the stock to sell on holidays like Black Friday and Christmas, since they had been shut for so many months prior. But this year it is a totally different story. With supply chains all up in the air, retailers face product shortages and logistical problems. Therefore, will have to make hard choices on which products to stock and make available to consumers, since not all products will be here before the holidays begin. Ultimately though whilst consumers set out to increase their budgets and spend more on these holidays, they are faced with less choice, less products, and empty shelves. Not to mention the higher prices retailers will have to impose and the need to start christmas shopping as soon as possible this year.
Will retailers even end up engaging in Black Friday this year? With them having to offer fewer and smaller discounts, is it even worth their while? Take Amazon for example, whilst not ignoring Black Friday totally, as they want to make an effort to support it, they have already warned customers not to expect widespread agressive discounting like previous years.