Stores claim no shortages but M&S warns of higher costs
SUPERMARKETS say they will have no shortages of stock this Christmas – but experts say the retailers face three-week delays.
Shortages of some items including clothes and home goods at Marks & Spencer could last until next year, management said, in response to supply chain delays and Brexit.
Marks & Spencer boss Steve Rowe said: “Unpacking the numbers isn’t a linear exercise and we’ve called out the Covid bounce back tailwinds, as well as the headwinds from the pandemic, supply chain and Brexit, some of which will continue into next year but, thanks to the hard work of our colleagues, it is clear that underlying performance is improving.”
Retail experts from JP Morgan Casenove said the issues at M&S were widespread, and retailers faced threeweek delays to fabrics and items for the home.
The analysts said in a statement: “In C&H [clothing and home] we understand M&S is experiencing stock delays broadly in line with the industry (three week delays)”.
Analysts from investing firm Peel Hunt also noted “industry headwinds will weigh here this year” when it comes to non-food items but supermarkets said they did not expect shortages of homeware and clothing.
A Morrisons spokesperson said: “We’re working hard with our clothing suppliers to ensure shopping is as normal as possible for customers this year. At the moment, there are no major availability issues and we would encourage customers to continue with their usual shopping habits.”
Sainsbury’s chief executive Simon Roberts said the supermarket was “working flat out to make it a Christmas to remember” but shoppers might need to accept the exact item they wanted is not available. He said it would normally take 24 or 25 days to get something shipped from Asia to the UK but this can now take more than 40 days. The Argos boss said electronic items were a particular issue due to a worldwide shortage of microchips.
Books, toys and turkeys are all facing supply chain issues and could be in short supply at Christmas.
Demand for turkeys is also rising earlier than expected ahead of Christmas as shoppers brace for festive food shortages, experts warn.
Frozen turkey sales has almost doubled, according to analysts at Kantar, suggesting Brits are stashing them in the freezer in case they can’t find any closer to Christmas.
Iceland said it had seen a 400% increase in turkey sales and a threefold hike in frozen party food.
Supermarket prices surged at the fastest pace for more than a year in October amid supply chain disruption and driver shortages, figures published earlier this week showed.