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Supply chain shortages could lead to fewer post-holiday sales – New Orleans, Louisiana

New Orleans, Louisiana 2021-11-30 23:51:00 –

If you’re a shopper who holds up big and better year-end deals after Christmas, you may be out of luck this season. In January, it can be much harder to find sales with ridiculously deep clearance. Blame the confused global supply chain. January is the golden month of price cuts and significant savings. It’s time for retailers to cut prices by as much as 75% to 80% to increase sales and wipe out the rest of the holiday items such as coats, sweaters, shoes, gadgets and pajamas sets. As many as 68% of consumers shop every week. According to the National Retail Federation, after Christmas, the juicy and full clearance trades goodbye in the hope of discounts after the holidays. The signs are already there. Black Friday shoppers will find that this year’s favorite stores aren’t as generous as usual. Moreover, if consumers remain motivated to shop, there is no need to motivate shoppers with attractive sales. And now, retailers are showing that they may use tactics other than discounts on products that couldn’t be sold before the New Year. Operating Gap, Old Navy, Banana Republic, and Athleta stores loses $ 300 million in sales for the holiday season due to COVID-related factory closures and port delinquency, as well as supply chain stagnation. Said that. To make matters worse, retailers said they would continue to have serious problems getting enough products for shoppers throughout the season. This is bad news for shoppers crazy about clearance, where Gap and Old Navy stores tend to be popular destinations. In January and February, retailers are considering a variety of options, such as packing and storing for next year instead of cleaning up at a discounted price right after Christmas. Gap’s chief financial officer, Katrina O’Connell, said in a recent earnings announcement that this season it will hold prices next year rather than having them cut in stores or online. ” Victoria’s Secret said in a recent earnings call that% of holiday products were delayed ahead of Black Friday due to supply chain issues, and there could be a lot of pajamas sets, robes and slippers that weren’t. .. You will arrive at the store by Christmas. However, do not expect items that will fall directly into the clearance bin in January. “I think we’ll have more carry-overs of merchandise such as PJs and robes in January than before. Past years. Victoria’s Secret CEO Martin Waters called at the table last January. I know I left money for it, so I’m okay with that. ” period. “I don’t feel overly stressed about price cuts,” he said. “Demand is right now for what they really want,” said Michael Brown, a partner in consumer practices for strategy and management consulting firm Kearney. It is based on supply shortages and strong demand. ”

If you’re a shopper who holds up big and better year-end deals after Christmas, you may be out of luck this season. In January, it can be much harder to find these ridiculously deep clearance sales.

Blame the confused global supply chain.

January is the golden month to win price cuts and some serious savings. It’s time for retailers to cut prices by as much as 75% to 80% to increase sales and wipe out the rest of the holiday items such as coats, sweaters, shoes, gadgets and pajamas sets.

According to the National Retail Federation, 68% of consumers shop in the week following Christmas hoping for a post-holiday discount.

However, retailers need to be prepared to say goodbye to their desire for a juicy, full-scale clearance deal, as inventory is tight and large quantities of out-of-stock items are heading towards the peak of gift purchases.

The signs are already there.

Discerning Black Friday shoppers will find that their favorite stores weren’t as generous as usual with this year’s holiday discounts. Moreover, if consumers remain motivated to shop, there is no need to incentive shoppers with attractive sales.

And now, retailers are showing that they may use tactics other than discounts on products that couldn’t be sold before the New Year.

Gap Inc., which operates stores in Gap, Old Navy, Banana Republic, and Athleta, said it would be costly due to supply chain stagnation. $ 300 million in sales loss We are heading for the holiday season due to COVID related factory closures and untreated ports. To make matters worse, retailers said there would continue to be serious problems getting enough goods for shoppers throughout the season.

This is bad news for shoppers who are crazy about clearance, where gap stores and old navy stores tend to be popular destinations.

For products carried over in January and February, we are considering various options, such as packing and storing the products the following year instead of discounting them immediately after Christmas.

“If we think it’s too late for the holiday season, we’ll put it on hold for next year instead of having it cut in stores or online,” said Gap’s Chief Financial Officer. Katrina O’Connell said in a recent earnings announcement.

Victoria’s Secret said in a recent earnings call that nearly 50% of holiday products are likely to be ahead of Black Friday due to supply chain issues, and that there are likely to be plenty of pajamas sets, robes and slippers. Christmas.

However, do not rely on items that fall directly into the clearance bin in January.

“I think there will be more carry-overs of products such as PJs and robes in January than in the previous year. Last year I had some money left, so that’s okay. The January table,” he said. Victoria’s Secret CEO Martin Waters said on the phone.

According to Waters, retailers will see how fixed-price sales work during that period. “I don’t feel overly stressed about price cuts,” he said.

Consumer strategy partner Michael Brown said retailers weren’t hesitant to shop fast and pay the full price for what they really wanted, so retailers still get as big a discount as possible after Christmas. He said it would hold up. And management consulting firm Kearney.

“Demand is there now,” Brown said. “Therefore, retailers are trying to optimize the margins of their products based on supply shortages and strong demand.”

Supply chain shortages could lead to fewer post-holiday sales Source link Supply chain shortages could lead to fewer post-holiday sales

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