DId you ever hear the term up a creek without a paddle? It seems that this holiday season will be one of the oddest ones we have seen in a long time. Why? You may ask?
As Auctioneers, we get a news feed that would pretty much choke a donkey – in about 24 hours we get anywhere from 200-300 emails and articles a day about what is going in in the world, as well as in the United States. A couple of things hit the inbox this week that should rattle some cages that we think is important.
First, Union Pacific and other rail carriers have stopped moving freight from the West Coast to the East coast due to COVID issues that Chicago and other freight yards are having. Chicago, for instance, is full with traffic and it makes it difficult to move anything new in when there is a backup of things to move out. So they have put a furlough on the freight, which about this time of year is your Holiday and Black Friday Purchases.
Estate Auctions are a great place to start to build your holiday gift stash!
Secondly, according to Salesforce, they are predicting a few things that they have pretty much hit the nail on the head with for 2020 and into 2021. US retailers will face an extra $223 billion in costs of goods sold this holiday season, according to their Q2 2021 Shopping Index data and initial holiday 2021 predictions. Driving costs are freight, manufacturing, and labor.
Compounding the challenge for retailers: Salesforce predicts a worker shortage heading into the November and December peak period.
What this means is that the cost of selling something to the average consumer is going up, which the consumer absorbs those costs. With the added tariffs from China, as well as the shortages across the U.S., this means the cost of doing business will hit the consumer more than any previous year.