It is going to cost Santa quite a few more dollars to come down the chimney this year.
A perfect storm of price increases shows no signs of letting up as Americans begin to think about their Christmas season shopping.
Two major factors are inflation, and the price increases caused by the total mess in the global supply chain.
Retailers have advised shoppers to get started on their holiday shopping early to avoid empty shelves and even higher prices further down the road.
American families can expect to pay "a lot" more this holiday season for gifts.
The reason why?
President Biden and House Democrats' out-of-control spending, which has caused inflation to skyrocket. https://t.co/0E9qKOt543
— House Republicans (@HouseGOP) September 30, 2021
Economic Woes And Inflation
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While delays at every level of the global supply chain continue, toy companies like Mattel warn that price increases are coming.
Goldman Sachs researchers say, “Mattel’s price increases in 2H21 will offset cost inflation from supply chain challenges.”
Some companies are trying to figure out ways to lessen the burden – like shipping their goods early so companies can stockpile inventory.
Holiday shopping 2021: Here’s why you should get started now https://t.co/MVMZXcqP2Q
— zbt CPA & Consulting (@zbtcpa) September 24, 2021
Five Dollar Tree?
In what might be a preview of things to come, discount store Dollar Tree announced that the price of some of their items will jump above the one dollar price tag, and even beyond three or five dollars in some areas.
Here again, supply-chain issues have gotten in the way of their typically-cheap prices.
Dollar Tree CEO Michael Witynski stated to the Wall Street Journal, “We recognize the need to make adjustments in the current economic environment.”
ECONOMY WATCH: U.S. trade deficit in goods up 0.9% in August to $87.6 billion. Not far from all-time high. Companies importing more goods ahead of holiday shopping season. U.S. deficits likely to remain quite high through the end of the year. Another record deficit seen in 2021.
— MarketWatch Economy (@MKTWeconomics) September 28, 2021
America’s ports are a key part of the shipping bottleneck. KTLA reports that as many as 500,000 containers are awaiting unloading from cargo ships off the California coast. No one seems to know how to solve the problem.
Those who are familiar with the backlog say that more dockworkers are needed. This would speed up wait times for truck drivers waiting on loads to be unloaded and transferred to truckers for delivery.
Back in August, during her trip to Singapore, Vice President Kamala Harris mentioned possible supply chain issues, “The stories that we are now hearing about the caution that if you want to have Christmas toys for your children it might be the time to start buying them because the delay may be many, many months.”
The Axios report says that price increases could go as high as 20% this holiday season. While 20% might be insignificant to some, those on a fixed income will feel the pinch when that income has lost 20% of its value.
Rob Garf, VP and GM at Salesforce says bottom line, “Consumers will likely be willing to cough up the extra cash for some items, while buying fewer items overall.”
Retailers are trying to stock up earlier than usual to make sure they have enough products on their shelves before the holiday shopping season starts in late November.#ConsumerGoods #CPGIndustry #HolidayShoppinghttps://t.co/7UTWZnTyKp
— STAR Brokerage Sales & Marketing Agency (@STARBrokerage) September 29, 2021
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