(BPT) - Thanksgiving is late this year, so the holiday shopping season is approaching faster than ever. As you're making out your gift list, are you concerned about inflation? Amid global uncertainty, what's the situation with the supply chain? Will the electronics, toys and other must-haves be on the shelves? How are retailers preparing for it all?
The 2024 Supply Chain Confidence Survey, conducted by Manhattan Associates, explores these questions, and more. Spanning over 1,000 consumers and retail and supply chain executives, the survey measured confidence and concerns for the upcoming holiday shopping season.
The results give a unique perspective across all parts of the shopping spectrum - the supply chain, retailers and consumers.
The majority of shoppers, 85%, cited inflation and increased prices as a top concern. In response, nearly 61% of supply chain leaders reported having invested in new technologies and processes to run more efficiently and reduce overall costs this season.
It's a symbiotic relationship - consumer concerns and retailers respond to help quell those concerns and make holiday wishes come true. The bottom line is, everyone wants to have a happy, and successful, holiday season. People want to find the perfect gifts for their loved ones without overspending and retailers want to have a robust season that for some, especially smaller businesses, defines their entire year.
What did the survey uncover? Here are some of the top findings.
Top findings of the 2024 Supply Chain Confidence Survey
- Inventory Concerns: 62.4% of supply chain leaders worry about inventory shortages. However, 87.2% of retailers have measures in place to ensure trending products are available during peak shopping periods.
- High Price of Holiday Cheer: 93% of consumers say price increases over the past few years have had a negative impact on them. 60% of consumers plan to buy fewer gifts, while 57% will seek less expensive options, and 52.2% will look (and are willing to wait) for sales and deals.
- Technology Comes to the Rescue: 61.2% of retail leaders recently invested in new technologies to improve the efficiency of their supply chain, and 80% are leveraging AI technology to improve inventory management and customer service.
How should consumers react? Recommendations based on the survey results
In short, have confidence, be flexible and shop early.
- Shop early. People resolve to do this every year, but this year it's crucial. Get your shopping list handled now and be prepared to spread out the holiday spend to avoid feeling the pinch. Remember, the best deals will come early this season.
- Shop online. Many of the best deals can be found online. 40.2% consumers surveyed said they plan to do most of their holiday shopping online. It's important to do your online shopping early so that you don't have to pay expedited shipping fees.
- Make technology your friend. Do you have someone on your shopping list that has everything? The latest GenAI tools, like ChatGPT, can be helpful in brainstorming creative gift ideas. 32.6% of consumer are using AI in their holiday shopping, with 14.2% planning to use AI to find the best deals.
- Shop the sales and do your research. You don't have to leave the house to take advantage of Black Friday, Cyber Monday or Small Business Saturday. Scour online sites for deals and steals. Remember, retailers are gearing up for these sales early.
- Be Kind to Santa's Elves. As stressful as holiday shopping can be, it is extra stressful for all the truck drivers, store associates, shelf stockers, and delivery drivers that move gifts through the supply chain. Please be patient and be sure to thank them for the important role they play.
Patience and flexibility will go a long way. And remember, it's not really about what's within that holiday wrapping paper. It's about spending time with who is unwrapping it.
For more information, visit https://www.manh.com/our-insights/resources/research-reports/the-state-of-supply-chain-confidence-ahead-of-the-2024-holiday-season.