In September, retail numbers surprised Wall Street with more positive growth than expected. But this good news only upset last week Amazon SlideCombined with Apple warning about chip shortage It will have a negative impact on their numbers over the next quarter.
Retailers have unanimously agreed that consumers should expect to be affected by supply chain disruptions and inflation. Recent study First Insight is working with the Baker Retail Center at Warton School, Pennsylvania. In addition, almost all disruptive supply chain issues affect the retail sector. They agreed to continue expanding until 2022 and beyond.
The double shortage, combined with inflation, requires retailers to develop new strategies to alleviate these issues. While consumers are accustomed to going out on Black Friday to negotiate, this year may look surprisingly different, with retailers taking different approaches this year. According to the study, 22 percent of retailers are either eliminating or reducing their promotion by the end of the year. Approximately two-thirds increase the cost of goods and direct shipping to the consumer. Thirty-six percent of retail executives surveyed said they would take a margin to make the price more consistent. However, 65 percent said they would change prices following inflation.
Retailers have begun using a variety of methods to determine inflation. Although one-third of the increase is cost-effective, 45 percent are using market information or customer votes to make these decisions.
Only 9 percent of retailers involved in the study said they would adopt new technologies, such as forecasting analysis, 3D design or digital product testing, to help fight chain disruption in the future, indicating that retailers still have a long way to go. Go to use technology more effectively. Other ways to combat the problem are working with a freight forwarding or logistics company (18 percent), improving forecasts (16 percent), finding new manufacturing or vending partners (13 percent), and facilitating different departments (11 percent).
Retail traders are often optimistic about how the supply chain disruption will affect their margins. More than two-thirds said they expected less than 10% loss, while 27 percent said they would be in the 10-20% range and only 5 percent expected more than 30%.
According to the survey, retail leaders expect supply chain disruption to affect consumers by 2022 and beyond. It will be a long time before retailers implement new technologies to help them control the future of their products, supplies and customers. Hiring speculative analytics, 3D design, and digital product testing can ensure that consumers want to buy whatever products are available. In addition, customer voice can be used to control consumer price increases fairly and equitably. Transparency always goes a long way in increasing purchases and ultimately gaining customer loyalty.