Beijing, 30 Oct (Xinhua) -- The ongoing supply chain crisis caused demand for Christmas products in the United States last year to exceed demand, and who expected that the plot would reverse a year later: many retailers only received goods this year that should have arrived before Christmas last year, resulting in excess inventory. In the United States, inflation continues to be high, consumer purchasing power has declined, and businesses have to rack their brains to clear inventory.
Affected by multiple factors such as the new crown epidemic and the trade war launched by the US government, the US supply chain crisis appeared in early 2020 and intensified the following year. Near the end of the year, port congestion, cargo ships are stranded, containers are piling up, and due to factors such as low port automation, freight tools and manpower shortages, cargo transportation has been repeatedly delayed, resulting in some supermarkets partially empty, many people even have difficulty buying Christmas trees.
A container ship waiting to be unloaded outside the port of Los Angeles, California, U.S., October 29, 2021. Xinhua News Agency
Agence France-Presse quoted Chris Butler, CEO of the American artificial Christmas tree and holiday decoration industry giant "National Tree" on the 30th, as saying that last year the company was "very difficult to supply", especially difficult to purchase enough Christmas trees and other products for consumers. Many retailers only received Christmas orders in January and February this year, resulting in an overstock of Christmas decorations this year, "because everything is long overdue".
James Zahn, editor-in-chief of Toy Grand View, a well-known American toy industry trade magazine, said: "We have gone from 'not enough things' to 'too many things' today. ”
On December 2, 2021, a woman passes by a Christmas tree that is sold on the street, New York, United States. Photo by Xinhua News Agency reporter Wang Ying
Adding to the headache for many U.S. retailers, as inflation now soars to a 40-year high, pressure on many households' budgets has increased. Butler said consumers are likely to be calculating and "not spending that much."
According to data from the US Department of Labor, the US consumer price index increased by 8.2% year-on-year in September, which remained at a record high. Analysts believe that high inflation has spread to the entire US economy and affected wages and family life.
For Hasbro Toys, a large U.S. toymaker, that means a decline in parental purchasing power. Hasbro CEO Chris Cox said on this month's earnings call that consumers are "becoming more price-sensitive" over time and that promotions "will be key in the coming quarters."
Customers shop at a supermarket in Eugene, Oregon, USA, on July 13. Photo by Xinhua News Agency reporter Wang Ying
Mattel, another U.S. toy manufacturing giant, also said this week that it would roll out more discounts as the holiday season approaches.
Oren Krachkin, an economist at Oxford Economics who studies the United States, said that September is usually the time when merchants are busy preparing for Christmas, but this year weak consumer demand and excess inventory among sellers have led to reduced freight traffic and lower shipping prices. In Krachkin's view, these factors can lead to significant discounts on goods, which can reduce merchant profit margins. (Wang Xinfang)
Source: Xinhua News Agency