Pandemic-related delays force retailers to tweak holiday messages
12/10/2021 17:56
By Arriana McLymore and Siddharth Cavale
NEW YORK, Oct 11 (Reuters) - Season’s greetings from your
favorite retailer come with a 2021-style postscript.
That gift you want to get for your loved one? It may be out
of stock. And the hot toy? It may not arrive in time for
Christmas.
Americans collectively are expected to spend as much as $1.3
trillion this holiday season https://www.reuters.com/world/the-great-reboot/amid-supply-chain-snarls-retailers-pitch-early-holiday-shopping-2021-10-01,
up from $1.19 trillion in 2020, according to Deloitte. But
retailers are bracing for inventory shortfalls, as well as
scarce labor at ports, driver shortages, rising warehouse
expenses and higher prices.
So they are encouraging shoppers to open their wallets early
this year, inducing fear by highlighting what retailers describe
as "supply chain challenges," "longer delivery times" and "lower
inventories," in marketing materials.
Surf- and skateboard-wear retailer Zumiez Inc's ZUMZ.O
website features a banner that reads: "Don’t let out-of-stock
items and shipping delays screw up your plans." The mall-based
retailer primarily sources merchandise from Asia, Mexico and
Central America. It did not immediately return messages seeking
comment.
Nordstrom JWN.N , which typically brings in about 20% of
its merchandise from China, on Thursday sent a holiday marketing
email to customers citing “global supply chain challenges” that
they said would likely put a damper on holiday shopping plans.
"We're anticipating that the hottest gifts may sell out on
our site and that shipping could take longer than we’d all
like,” Nordstrom President Peter Nordstrom and CEO Erik
Nordstrom said in a joint emailed message to customers.
Nordstrom declined to comment.
In surveys by consulting firms, some shoppers have
previously said they are concerned about stock availability and
even that they already noticed empty shelves as far back as
August. Although half of U.S. consumers surveyed in August by
Sensormatic Solutions indicated that they would start their
holiday shopping before November, there is no evidence of
Christmas-related panic buying, at least not yet.
The president of work-apparel retailer Carhartt told
shoppers in an email Wednesday that it is aware of “longer
delivery times and lower inventories,” and its own “inaccurate
product availability” problems: “Now that fall is on the
horizon, it’s time to start thinking about the holidays….we
encourage you to get your order in soon for the best possible
on-time delivery,” Linda Hubbard said.
Carhartt’s clothes are made in the United States and in
Mexico. The company declined to comment.
Supply logjams are putting stress on all retailers but
especially those -- including Best Buy Co BBY.N , Gap’s
GPS.N Old Navy and Bed, Bath & Beyond BBBY.O -- that get
much of their merchandise from manufacturers based in Asia and
that tend to bring in the products on ships through Southern
California ports https://www.reuters.com/world/us/americans-may-not-get-some-christmas-treats-white-house-officials-warn-2021-10-12.
More than 60 container ships at anchor at Los Angeles and
Long Beach ports could not unload holiday cargo as of October
11, according to the Marine Exchange of Southern California, due
to labor, truck driver and equipment shortages.
Best Buy's Chief Executive Corie Barry said in August that
unprecedented demand could result in "some level of inventory
constraints" for the rest of the year, adding that it has been
harder to get items such as home theaters and large appliances.
The electronics chain said it expects to offer fewer holiday
promotions than two years ago, even if they are elevated
compared to last year. A spokesman for Best Buy declined to
provide specifics.
PEAK DAY, EVERY DAY
"The declining popularity of Black Friday, coupled with
consumers starting their holiday shopping early, means that
retailers and brands need to engage consumers throughout the
season," Jill Standish, head of Accenture’s Retail Group said.
"It requires retailers to operate like its peak day every
day."
White House officials, scrambling to relieve global supply
bottlenecks choking U.S. ports, highways and railways, warned
Americans may face higher prices and some empty shelves this
Christmas season urn:newsml:reuters.com:*:nL1N2R81HD
Walmart’s WMT.N Sam’s Club said Friday it is offering more
holiday events and holding them earlier in fall compared to
2020. But many analysts say they expect to see fewer doorbuster
price promotions than usual in past holiday seasons because
retailers simply may not have enough merchandise on hand in the
first place.
"There will be very limited supply behind those bigger
discounts," said Kristin McGrath, a shopping expert at deals
tracking website BlackFriday.com.
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High stakes Christmas looms as surging to demand meets supply
chain snarls https://www.reuters.com/world/the-great-reboot/high-stakes-christmas-looms-surging-toy-demand-meets-supply-chain-snarls-2021-09-20/
Amazon bets on Black Friday deals in early holiday shopping push
https://www.reuters.com/business/retail-consumer/amazon-bets-black-friday-deals-early-holiday-shopping-push-2021-10-04/
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(Reporting by Arriana McLymore, Editing by Nick Zieminski)
((arriana.mclymore@thomsonreuters.com;))