Shoppers in the US are returning to stores and splurging on all types of items, but the big question is: How much will supply shortages, higher prices and staffing issues dampen their mood this holiday season?
Americans, already fatigued with social distancing policies amid the COVID-19 pandemic, might get grumpy if they cannot check off items on their holiday wish lists, or they might feel disappointed by the skimpy holiday discounts.
Exacerbating their foul moods is the fact that many frustrated workers called it quits ahead of the holidays, leaving businesses short-handed during their busiest time of the year.
Shoppers are expected to pay on average 5 to 17 percent more for toys, clothing, appliances, TVs and others purchases on Black Friday yesterday compared with last year, said Aurelien Duthoit, senior sector adviser at Allianz Research.
TVs are to see the highest price spikes on average, up 17 percent from a year ago, the research firm said.
That is because whatever discounts available were to be applied to goods that are already expensive.
Such frustrations could mute sales for the holiday season that are supposed to break records.
The National Retail Federation, the US’ largest retail trade group, said it expects holiday sales to increase 8.5 to 10.5 percent compared with last year’s holiday period, when shoppers, locked down during the early part of the pandemic, spent their money on pajamas and home goods — mostly online.
Holiday sales increased 8.2 percent last year from 2019.
“I think it is going to be a messy holiday season,” GlobalData Retail managing director Neil Saunders said. “It will be a bit frustrating for retailers, consumers and the workers. We are going to see long lines. We are going to see messier stores. We are going to see delays as you collect online orders.”
Jill Renslow, executive vice president of business development and marketing for Mall of America, the nation’s largest mall, expects customer counts on Black Friday to be close to the 2019 levels.
Its store tenants are seeing “power shopping” earlier in the season, Renslow said.
However, the mall’s tenants have struggled with staffing and, as a result, the center was to open two hours later and close one hour earlier yesterday, she said.
“They [retailers] are doing everything they can to deliver a good guest experience, but consumers are going to need to be patient and know that the lines may be little bit longer,” Renslow said.
Still, do not discount the resilience of shoppers who have shown signs that they want to celebrate after muted holidays last year.
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