As the holiday season approaches, retailers are bracing themselves for potential cutbacks in consumer spending, according to a recent CNBC survey. Approximately 71% of respondents expressed concern over customers reducing their holiday expenditures, despite stronger-than-expected national monthly retail sales, according to a report by Instore Magazine.
To adapt to this anticipated trend, retailers are adjusting their stock orders for the holiday season, with two-thirds (67%) of survey respondents from the CNBC Supply Chain Survey expecting shoppers to actively seek out discounts this year. Consequently, around 77% of items being ordered by retailers for in-store sales fall into the middle price range, while luxury and high-end products such as memorabilia, electronics, and apparel account for only 17% of orders.
The VP of Supply Chain and Customs Policy at the National Retail Federation (NRF) highlighted the survey results as evidence of the ongoing challenges and stress faced by retailers and other businesses amidst current supply chain issues. He stated: “Retailers are constantly working to ensure they have the right inventory mix to meet consumer demands, especially as we enter the peak shipping season for the holidays. The ongoing challenges with the West Coast port labor negotiations and associated disruptions have certainly impacted some supply chain decisions. Many shippers have shifted cargo away from the West Coast and may decide to permanently shift away, even after the tentative deal is finalized.”
