Retailers have already begun to forecast inventory problems for the holiday shopping season at the end of the year. A surge in good prices has also been forecasted as a result of the many supply chain issues that are also keeping store shelves low on stock. Fashion and beauty companies — such as ones that sell shoes, clothing, and makeup — seem to be the hardest hit when it comes to low stock for the holiday season.
As a result of this lower-than-average stock, many companies have decided to change up their marketing tactics — and their sales. For example, Steve Madden is releasing fewer promotions and sales during the holiday season because they are experiencing a lower than normal inventory. Meanwhile, businesses like Ralph Lauren are spending more money on marketing and promoting certain items (such as their quilted jackets), rather than promoting any type of sale.
All of these marketing moves are in preparation for the holiday season. Because many businesses do not have the inventory they’d like, they cannot necessarily have the normal holiday sales that consumers are used to. However, if businesses accurately market their goods, this may not be too much of a problem for them.
The price of goods may be a problem for consumers, though. Because of the many supply chain problems that have hindered business in the United States, the price of goods has surged in the past few months. As businesses work to try to fill their inventory up before the holiday season really starts to ramp up, they are spending more money on carriers and shipping. As a result, the price of goods will rise.
The price of goods may also rise because many companies are trying to hire an accurate amount of workers for the holiday shopping season. For the past few months, ever since more consumers started shopping in stores again earlier this spring and summer, the nation has been gripped by a labor shortage. While more workers have finally started to return to work, there is still a record number of job openings that have yet to be filled.
To try to sway workers to work for them, employers have raised wages and offered bonuses. This raise in wages could also result in the price of goods rising during the holiday shopping season.
Because of all of these issues, some businesses are even forgoing holiday marketing as a whole. For example, E.l.f. Beauty has already canceled its holiday programming plans in August because of low inventories. Meanwhile, other companies have decided to stock their shelves with their holiday products earlier than normal.
Some businesses have also prepared for these issues and ordered their holiday products — such as gift and value sets — early, allowing them to have a high stock in these specific goods.
As the holiday shopping season ramps up, analysts will finally be able to see just how these low inventories impact how consumers spend money at the end of the year — and how it will affect the economy as a whole.