The global supply chain crises and shipping delays are driving retailers and customers to start off the Christmas shopping season earlier this year. Covid Pass restrictions will also increase the demand for online shopping and speedy delivery services this winter.
According to Bloomberg, the pandemic has caused great damage to the global supply chain and the situation has gotten worse this year. Many factories have closed down, there are problems with labor shortages and transportation costs have increased.
Bigger retailers are managing to secure their Christmas goods to arrive on time by chartering their own ships or paying for the higher-priced air freight, but for smaller retailers, it is a struggle.
Due to concerns regarding lower supply, customers are looking to do their Christmas shopping earlier this year. According to ICSC’s Annual Holiday Shopping Intentions Survey, 75% of shoppers are planning to shop earlier this year.
Increase in Prices
High demand, low supply, and an increase in transportation costs will lead to higher prices of goods during the holiday season. We should also expect that the Christmas deals won’t be good as before the pandemic.
Buy Online and Pick-up In-Store
Considering the introduction of the Covid Pass in many countries across the world, restricting unvaccinated visitors to enter malls, we should also expect an increase in online shopping.
For this reason, retailers should make early preparations for the spike in online demand and focus on making sure their deliveries are serviced on time. Due to the concerns among customers regarding delivery time, the Buy Online and Pick-up In-Store or Collection Points will also rise in popularity.
Shopping Centers Supporting Retailers
As Christmas shopping will start off earlier this year, shopping centers will also be forced to start off their events and marketing activities earlier to support this new trend.
As we mentioned the Covid Pass, shopping centers should also think about supporting retailers to service unvaccinated customers by setting up collection points in areas where they will be allowed to pick up ordered goods.