Shoppers are returning to stores and buying all kinds of items. But the big question as the holiday shopping season kicks off in the U.S. is: How much will supply shortages, staffing issues and higher prices dampen their mood this holiday season?
FILE - Black Friday shoppers wearing face masks wait in line to enter a store at the Glendale Galleria in Glendale, Calif., Friday, Nov. 27, 2020. Retailers are expected to usher in the unofficial start to the holiday shopping season Friday, Nov. 26, 2021, with bigger crowds than last year in a closer step toward normalcy. But the fallout from the pandemic continues to weigh on businesses and shoppers' minds.
Americans, already fatigued with pandemic-induced social distancing policies, may get grumpy if they can’t check off items on their holiday wish lists, or they may feel disappointed by the skimpy holiday discounts. Exacerbating their foul moods is the fact that many frustrated workers called it quits ahead of the holidays, leaving businesses short-handed during their busiest time of the year.
“I think it is going to be a messy holiday season,” said Neil Saunders, managing director at GlobalData Retail. ”It will be a bit frustrating for retailers, consumers and the workers. We are going to see long lines. We are going to see messier stores. We are going to see delays as you collect online orders.”
Still, don’t discount the resilience of shoppers who have shown signs they want to celebrate the holidays after muted celebrations last year. Store closings have also leveled off, a reversal of the bleak picture in 2020. Coresight Research, a global research firm, says retailers in the U.S. have announced 5,057 store closures for the year, but the number of store openings is 5,103 as of November 19. Coresight Research predicted in June 2020 there would be as many as 25,000 store closures last year but in reality, the number was just over 8,000.
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