We all love to find a good deal—especially during the holiday season. But shoppers shouldn’t expect to see deep discounts when they hit the stores to do their holiday shopping this year. According to Sofi, consumers should “brace for fewer holiday discounts” in the 2021 holiday shopping season.
Three Major Factors Are Squashing Good Deals
Experts say that most products—everything from clothing to toys—will most likely sell for full price this year. Or, at least, very close to it. The lack of discounts is being blamed on supply-chain delays, inflation, and strong consumer demand.
Instead of pushing those Black Friday deals and huge promotions with holiday discounts, retailers like Macy’s, J. Jill, Home Depot, The Gap, and many others are skipping out on the traditional promotions and sales this year.
“There’s been a lot less promotions in the marketplace because there has been a shortage of supply….Last year was not very promotional. We don’t think that this holiday is going to be terribly promotional either,” admitted Steve Lawrence, chief merchandising officer of sporting goods chain Academy Sports + Outdoors.
Changing Consumer Behavior
Nearly two years into the pandemic, the negative consequences of lockdowns and emergency economic policy decisions are really starting to emerge. Factory shutdowns and a lack of workers throughout the supply chain will be more evident than ever this holiday season.
The pre-COVID retailer strategy of saving big discounts until the 4th quarter to drum up holiday sales are gone. Now, retailers are attempting to change consumer behavior due to the changing market conditions. Waiting to make your purchases until the holiday deals arrive could become a thing of the past.
Prices Will Be Even Higher
In addition to the lack of holiday deals, shoppers will also see the prices of sought-after items go up. Inflation and supply chain issues are causing the price of goods, packaging, and transportation to rise. This means each dollar won’t go near as far in 2021 as it has in the past.
But wait, there’s more! In addition to higher prices and lack of discounts, shoppers should also expect empty shelves. Since January 2020, out-of-stock messages from online retailers have shot up a whopping 172% according to SoFi.
Shipping delays could cause some seasonal items to arrive late, or not at all. So, if you want to grab everything on your shopping list, the experts say to hit the stores now. If you wait, there’s a good chance that you won’t be able to find everything you are looking for.