Expect All-Time High for Holiday Sales Despite Supply Chain Issues and Labor Shortages
Despite empty shelves as items continue to sit at congested ports, retailers can still expect eager holiday shoppers visiting stores and websites. The National Retail Federation announced Wednesday that it expects November and December holiday sales to rise between 8.5% and 10.5%, CNBC reports, for a total between $843.4 billion and $859 billion of sales. Other reports are also optimistic, expecting sales to grow by at least 7%.
Holiday retail sales have increased by 4.4% on average over the last five years, according to the NRF, but this year marks an all-time high for holiday sales growth, noted CNBC.
Backed-up supply chains and labor shortages have caused out-of-stock items to skyrocket by 172% from Jan. 2020 and 360% from 2019, three times the average percentage, as previously reported by GoBankingRates. However, big retailers such as Amazon, Target and Walmart have gone above and beyond to make sure shoppers get what they need on time.
“It’s not as if there are not some headwinds and challenges, and yet in spite of that, we have a great deal of confidence that consumers will continue to power the economy in this last quarter of the year,” NRF President and CEO Matt Shay said on a call with reported, reports CNBC.
While some shoppers may not be able to find their favorite brand with some items, it won’t be enough to curb shopper enthusiasm.
“They are going to affirmatively be out shopping for the holiday season, and they won’t go home empty-handed,” he continued. “One way or the other, they will shop, they will purchase and they will find that item.”
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