Tomlinson from page B6
their nests for the work-fromhome era.
Retailers were not only caught flat-footed with little inventory, they had the wrong products and placed huge orders for the right ones. Fast-forward to a year later and Americans are returning to normal life and buying all kinds of things in large quantities.
Many are determined to have a blow-out holiday this year. Stores are scrambling to find the goods people want and having trouble finding space on overloaded ships.
Unlike last year when the last mile of delivery to a customer’s doorstep was the biggest challenge, this season, the first mile past the port of lading will be the toughest.
The cost of getting a container from Asia to the U.S. on a standard cargo ship has risen 700 percent from some ports. The prices are so high that Home Depot, Costco and Target have chartered entire ships to save money and speed delivery of the goods they plan to stock.
These charters, though, reduce the number of ships available to carry goods for smaller retailers. Shipping prices for them will remain high and consumers will have to pay more as a result.
Salesforce, which makes customer relationship management software, predicts retailers will see a $223 billion increase in logistics costs this year. That will translate into a 20 percent average increase in prices.
“With persistent global supply chain disruptions, retailers must draw consumers to their online and physical stores early in the season to fulfill demand and capture holiday spending,” said Rob Garf, vice president and general manager of retail.
Small retailers struggling to compete with big companies and online marketplaces could face their worst year yet. But there are ways to avoid having shuttered Asian factories, overloaded container ships and inflated prices ruin your holiday.
First, buy locally made goods from local retailers. Thousands of Texans make fantastic products sold by your neighbors in art galleries, jewelry shops and retail stores. They need your business, and the money stays local.
Second, buy a gently used, secondhand product. The most environmentally friendly purchases you can make are from a thrift store or high-end consignment shop. These items are often just as good at half the price.
Lastly, give your time and attention to someone you love instead of a product. That’s probably what they want most anyway.