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. 

Madhav Durbha
Retailers must pay close attention to consumption patterns and selectively build in optionality in their supply chain to address the changing wants and needs of consumers
- Dr. Madhav Durbha, VP supply chain strategy at Coupa

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.

Key Takeaways

90% of retailers are experiencing excess inventory

88% are already experiencing out-of-stocks on key holiday items

65% are understaffed