Small Businesses and Holiday Optimism
Independent businesses are cautiously optimistic that their holiday seasons will be bright, despite problems this year ranging from supply chain hitches to shortages of trendy seasonal items, after nearly two years of the pandemic. This year, many businesses ordered decorations, toys, stocking stuffers, and other things well in advance, relying on smaller vendors to fill in any gaps in their inventory. They've used social media to reach out to customers. They're also betting that supply chain troubles at larger businesses this year will result in a surge of last-minute shopping in their stores.
Pandemic & Inflation
Concerns about omicron and growing instances haven't had a noticeable impact on holiday shopping so far. According to Sensormatic Solutions, retail traffic was up nearly 20% year over year for the week ending Dec. 18, but down 23% from the same week in the pre-pandemic year of 2019. However, there are a few critical shopping days left. Small businesses are hoping to profit from the predicted increase in holiday sales. The holiday shopping season is critical since it can account for 20% or more of a retailer's annual sales, as well as increasing store traffic and attracting new customers. The National Retail Federation forecasts an increase in sales of 8.5 percent to 10.5 percent for the entire month of November and December, following an increase of 8% in similar months in 2020.
Despite high inflation and the ongoing epidemic, American consumers have been spending thanks to government support, soaring stock prices, and gains in their homeownership. This has put a strain on the global supply system, leaving retailers scrambling to keep up with customer demand.
Supply Chain Issues
Many retailers were notified by vendors in December that shipping costs would be rising. So those that took a chance this year and ordered substantially more than as she normal before the price hikes took effect and make a place for the increased inventory, are still staying competitive while larger retailers are out of stock of major gift items.
Similar gambles have paid off handsomely; as some retailers are seeing upwards of 90 percent from the same period last year. Other firms are continuing to follow procedures established during the outbreak. They claim that social media campaigns to reach out to clients during the pandemic, such as a video of new inventory items, are still driving sales. Nonetheless, there is still a concern that the supply chain will stymie certain sales. Some retailers report purchasing from a variety of merchants for crucial things to ensure that at least some are received.
This year has been a "buy it when you see it" type year. While retailers are glad for what they have on hand, many are still looking forward to receiving interesting items that were ordered months ago but have yet to receive. Some retailers, for example, have had issues procuring things from certain larger vendors, such as Mud Pie, a clothes, gift, and home decor retailer. As a result, they've gotten inventive, sourcing smaller vendors, mom and pop wholesalers with whom they haven't done large business previously. High-five to the "little guy". However, again, this is only the case if those critical business decisions were made earlier enough and the business was prepared to take on the extra expense early to accommodate the seasons and combat supply chain issues.
Conclusion
Businesses are anticipating a boom in business in the final days before Christmas, so having items in stock is crucial to see an increase in last-minute purchases. While last-minute sellouts are always an issue, being able to spread the word that your establishment has plenty of options, plenty of stock, and you have them covered, will keep small retailers selling until the New Year.
Comments
Post a Comment