Don’t wait this holiday season
Shoppers may find little to choose from as global supply chain issues stress retailers
NEW YORK — The Perfect Pigg, a gift shop owned by Ginger Pigg, is the go-to place for residents of Cumming, Georgia, to pick up gift items.
But this year, store shelves might be a little sparse. Because of bottlenecks in the global supply chain, many stores like Pigg’s are scrambling to try to get all the inventory they can ahead of the crucial holiday shopping season.
“I’m a little stressed,” said Pigg, who has about 60% of the Christmas inventory she usually has at this time. Some stock she ordered in July hasn’t arrived yet. “I feel like I’ve done everything I could do,” she said. “I’m hoping and praying it all comes in.”
The global supply chain has been buffeted by a multitude of problems, from factories having to close due to COVID-19 surges, a lack of shipping containers, backups at ports and warehouses, and a shortage of truckers.
While bigger retailers like Walmart and Target have the power to buy their own containers, use air freight and take other steps to make sure they get inventory, smaller retailers are at the mercy of their vendors, who are increasingly suspending delivery guarantees and sometimes not communicating at all.
Last year, Renee Silverman, owner of Irv’s Luggage in Vernon, Illinois, didn’t buy luggage ahead of the holidays — no one was traveling. This year, people are traveling, but is finding luggage to sell is a problem.
Inventory that was supposed to come in August and September has been pushed back to December. Silverman has tried spreading orders between five or six vendors.
Meanwhile, prices are rising due to a surge in shipping costs. At this time last year, ocean freight rates from China to the U.S. West Coast were $3,847 per 40-foot container. Now, the same container will cost $17,377 to ship, according to Freightos, a Hong Kong-based online freight marketplace. That’s a 352% increase.
The average time it takes for ocean freight to go door-to-door has increased 45% over the last year, from 51 days to 74 days, according to Freightos. Ports in Los Angeles and Long Beach, California, account for 40% of all shipping containers entering the United States.
Rob Pickering, owner of five Snapdoodle Toys & Games stores in the Seattle area, said ordering for the holidays has “been a real struggle.”
Big holiday orders usually placed in August were moved up to July. So, the company’s warehouse and stockrooms are fuller than normal for this time of year.
Still, some items that Pickering ordered early haven’t arrived. Some smaller toy makers have already stopped taking and filling any more holiday orders.
“We are telling our customers to buy it when you see it, he said.
Christine Noh, CEO of Nohbles, a small chain of shoe and apparel stores in New York and New Jersey, is terrified about this holiday season. Her inventory is down 58% and half the shelves in her warehouse are empty. Big brands like Nike and Adidas were heavily affected when factories in Vietnam closed.
Noh started a private label line to help make sure to have enough stock in stores. The clothing is made in Bangladesh, where she has a relationship with the factory.
“When we’re placing an order with them, we have more communication and visibility,” she said.