Getting that special toy at the top of your niece’s wish list may be a little challenging this holiday season, according to Dr. Keith Story and Hai Ying Zhang of the Craig School of Business. The lingering effects of the COVID-19 pandemic and its disruption of supply chains continue to create problems for both consumers and retailers.
Story, an assistant professor of marketing and supply chain management, and Zhang, a lecturer in global marketing and retail management, are experts in retail on a global scale. In addition to teaching, both have worked in international marketing for major corporations.
“Shoppers should expect a more limited supply and more limited variety of items this holiday season,” Story said. “Currently there is quite a bit of congestion in getting materials from producers to consumers. Seasonal holiday items are particularly vulnerable to delays. Forecasts of production runs for holiday items are made many months in advance, and the plans of many firms were disrupted by the scaling back and shutdown of production and distribution capability due to the pandemic.”
Delays and limitations in holiday goods are an annoyance to consumers, but for retailers, not making holiday sales targets means a painful hit in profitability. “Holiday sales in November and December have averaged about 19% of annual retail sales over the last five years, and that number can be even higher for some retailers,” Zhang said. “Jewelry, electronics, sporting goods, clothing and toys are some of the most popular Christmas gifts year after year, and retailers of these items are more reliant on holiday sales.”
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