After September’s better-than-anticipated retail sales numbers, a new survey polling top retail executives points to a gloomier horizon.
Fully 100 percent of the senior executives who participated in the survey by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania agree that “disruptions will mark the upcoming holiday shopping season.” Further, 98 percent agree that supply chain issues will continue impacting the retail sector through 2022 and beyond.
First Insight notes that increased cost of goods and shipping are being handled by retailers in various ways.
Professor Thomas Robertson, Academic Director of Wharton’s Baker Retailing Center, says, “Over a third of retailers are absorbing the hit and keeping prices consistent; however, an astounding 59 percent of retailers said they will be passing on the cost to consumers. For this holiday season, we anticipate that consumers are going to bear the brunt of this disruption through increased shipping and product prices.”
Greg Petro, CEO of First Insight, adds, “Consumers have been conditioned to expect wide availability and lower prices starting with Black Friday and extending through to post-holiday sales. Our research indicates that this year will be decidedly different, and consumers should plan to shop early to avoid disappointment and expect to pay more. Smart retailers and brands are safeguarding margins by optimizing their pricing and promotions based on real-time Voice-of-Customer-data.”
The survey also indicated that shoppers can expect fewer sales and promotions this holiday season, with 22 percent of retailers saying they will eliminate or reduce planned promotions in response to lower inventories and higher prices.