According to the American Overseas Chinese Daily, the annual year-end holiday season is approaching, and consumers are choosing gifts for friends and family, and hope to reap preferential prices. This year, however, it may be difficult for consumers to see the emergence of steep discounts, all of which is to blame for the stagnation of global supply chains.
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CNN reported that retailers across the country are struggling to solve the problem of goods being blocked due to port congestion. On the other hand, there is also a shortage of workers unloading and transporting products from ships to warehouses and distribution centers. This has resulted in many stores not being able to prepare the right amount of merchandise at the start of the shopping frenzy, and out-of-stock times may also increase. Inventory issues limit the store's motivation to offer a deal on a product.
Macy executives told a meeting at Goldman Sachs last month that Macy's discounts had been reduced this year due to tighter inventories, which has helped boost profits. Adrian Mitchell, Macy's chief financial officer, said during the conference: "From a promotional perspective, this year's level of promotion is lower than historical. We've been thinking about which categories need promotions and we'll continue to do so. ”
Women's clothing chain J. Jill also said discounts will weaken in the coming weeks. "Supply chain disruptions are on the rise, leading to increased shipping costs and delays." J. Jill Chief Financial Officer Mark Webb said on a recent earnings call.
Weber also said that while the company is working with suppliers to speed up shipments, he expects these disruptions to continue in the coming weeks. He added that the current focus is on offsetting higher costs from supply chain pressures by reducing promotions and selling products at full price.
Steve Lawrence, chief marketing officer of sporting goods chain Academy Sports+Outdoors, also said shoppers will rarely see steep discounts during this year's holiday season. Lawrence said: "Due to the shortage of supply, the promotions in the market have decreased a lot ... There weren't many promotions last year either. We don't think there will be much promotion this year either. ”
Wells Fargo analyst Ike Boruchow said in a report this month that retailers entering the holiday shopping period offered fewer promotions in September than in the same period last year. Boruccio wrote in the report: "The number of clearance activities in September decreased again, possibly due to supply chain issues. The suspension of manufacturing in Vietnam and delays at ports have limited the ability of brands and retailers to import products. (Original title: The holiday season is coming, but it is difficult to find supply chain shortages as the culprit)