Supply Chain Woes Could Mean Empty Stockings for Consumers
Annual Study from Coupa Reveals Retailers' Concern Around 2022 Holiday Season
Retailers are battling challenges on all fronts this holiday season as they deal with lingering labor shortages, continued supply chain disruptions, rapidly changing demand, and more.
95% of retailers don’t think they can fulfill consumers’ holiday needs.
By The Numbers
7 in 10 anticipate supply chain disruptions will hurt revenue
Up 11% YOY
93% worry a recession will reduce consumer spending
9 in 10 are concerned their suppliers will shut down
Up 61% YOY
Dipping Demand Impacts Inventory and Retailers
Demand swings in addition to supply chain snarls are causing additional complications this year. Many retailers are facing inventory issues due to seasonal merchandise arriving late and shifts toward “Just-in-Case” inventories, on top of the slowdown in consumer demand due to the inflationary economic environment.
Despite precautions retailers are taking to keep their customers shopping in their stores – 66% have or plan to over-order products, 55% have or plan to rush-order products, and 33% have or plan to invest in additional inventory management tools.