Shoppers are feeling the pinch in their wallets this coming holiday season, with 85% citing inflation and increased prices as a top concern, according to a survey of consumers and retailer and supply chain executives, conducted by Manhattan Associates Inc. On the retailer side, nearly 61% of supply chain leaders reported having invested in new technologies and processes to seek efficiency and reduce overall costs this season.
The 2024 Supply Chain Confidence Survey, gathered information about the confidence and concerns for the upcoming holiday season of 250 executives in retail, 250 in supply chain logistics, and 500 consumers, conducted in September 2024.
Both retailers and consumers are feeling the pressure of inflation, the survey’s authors say. Approximately 70% of retailers are anticipating higher holiday costs, and 64% of consumers report having to reduce their spending on non-essential goods due to inflation. To further protect their wallets during the holiday season, 52% of consumers confirmed they will prioritize (and are willing to wait for) deals and discounts over every other shopping criterion this season.
To mitigate the impact of inflation, nearly 70% of retailers said they will offer increased sales and discounts, 56% will offer discounts via their loyalty programs, and 34% will offer flexible payment options.
But supply chain leaders and retailers are also leveraging new technologies including artificial intelligence, streamlining operations, and implementing strategic measures to optimize operations and reduce costs, the survey found, and 44% of them plan to make fewer seasonal hires in stores this year. However, 58% of supply chain leaders plan to increase their workforce to manage peak omnichannel demand. More than a third of the retailers surveyed will be implementing the latest automation technologies to hedge against rising costs (35%) and manage last-minute order surges (42%).
With only 27 days between Thanksgiving and Christmas, this holiday shopping season is shorter than normal, prompting consumers to avoid the last-minute shopping spree. The survey showed that 40% of consumers are planning their shopping journeys earlier to spread out their holiday spending, with nearly 65% of consumers rating free shipping as a top priority.
Similar trends are expected to play out in the South African retail market this festive season.
Source: Supply Chain Brain
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