Annual Report
Despite Supply Chain Challenges, Shoppers ‘Won’t Go Home Empty-Handed’ BY JONATHAN GOLD
EVERYWHERE YOU LOOK NOW, stories are being written about supply chain disruptions. Many are asking what the impact of these disruptions will be for retailers. Will there be products on store shelves or available online when consumers want them? Will the disruptions lead to higher prices for consumers? These are certainly the right questions to ask. Supply chain disruptions happen all the time. However, we have never seen disruptions of the degree and duration we are witnessing today. Throughout the pandemic, the supply chain has been stressed with demand far outpacing supply. That applies not just to finished retail merchandise but also the inputs and raw materials needed by domestic manufacturers to produce their 78
products. Moreover, there are shortages of labor and equipment as well as limited capacity on ships, rails, and trucks to move merchandise goods and materials through the supply chain. Many of the operational challenges our ports and other parts of the supply chain are facing existed well before the pandemic, but COVID-19 brought these issues to the forefront and further exacerbated an already complex system. Despite these challenges, retailers worked around the clock to ensure that products were available during the holidays. With consumer demand remaining strong, NRF expected another record-setting holiday season with a forecast that sales would grow between 8.5 percent and 10.5 percent. That is certainly good news for retailers and a clear sign that the Jan uar y / Fe b r uar y 2022 | DELAWARE BUSINESS
