Retailers say they have enough products for Black Friday and holiday shopping.
- Countries around the world find their place after long period of restrictions and trade disruption induced by Covid-19
- But supply chain issues add a new challenge.
- However, in South Africa, some retailers are confident that consumers will not only be able to take advantage of great deals for Black Friday next month, but also have a happy holiday season.
Some of South Africa’s biggest retailers say global supply chain issues won’t be a problem for people looking to take advantage of Black Friday specials next month or start Christmas shopping.
Countries around the world are finding their place after a long period of restrictions and trade disruption induced by Covid-19. But now they face another hurdle – supply chain shortages, as while some countries recover, others are still trying to manage the pandemic.
In Vietnam, for example, factory closures mean popular brands like Nike and Adidas face production delays. Port closures and blockages have also put a damper on the road. But the UK is grappling with the double-edged impact of the pandemic and Brexit, following an exodus of workers such as truck drivers and butchers who have left the country.
And with the holiday season quickly approaching, consumers are about to have a tough time shopping.
But back in South Africa, some retailers are confident that consumers will not only be able to take advantage of great deals for Black Friday next month, but they will also have a happy holiday season.
Supermarket chains Shoprite and Checkers said they were well prepared for the season and had “millions” of products ready for consumers.
“Although there are constraints in global supply chains and ports, the Shoprite Group continues to monitor the supply chain situation and remains in daily contact with factories, suppliers and other relevant stakeholders. to properly manage the flow of goods and the distribution of products, “said the supermarket group. .
The group added that its ability to visibly track and monitor orders and shipments enables it to plan and manage sudden changes in supply.
Massmart, owner of stores like Game, Makro, Cambridge and Builders, has been hit by local port congestion and the global shortage of shipping containers.
However, the owner of the retail chain says he will have products ready for his customers.
“Although we have, in line with broader industry experience, experienced disruption with some imported products, we are confident that we will mainly have sufficient inventory to meet demand in upcoming Black Friday and holiday promotions. year-end, ”said Massmart spokesperson Brian Leroni.
Game stores will have a special Black November month, where it will have four weekly deals, instead of all deals in one day.
Retailer Pick n Pay is also customer ready, saying it will offer customers bigger and better discounts on Black Friday.
“We plan months in advance to make sure we have the right stock – and enough – for our customers at one of the biggest trade events of the year. This year is no different. We only import a small percentage of merchandise and most of our products are made locally, ”said Pick n Pay.
South Africa’s largest online retailer, Takealot, declined to comment.
Old Mutual Investment Group chief economist Johann Els said this year’s Black Friday is likely to be stronger than last year, due to a loosening of foreclosure regulations, people wanting to exit and of pent-up demand.
“Household savings rates are still better than before the Covid-19 crisis. What happened during the Covid-19 lockdown last year was that the spending collapse was far bigger than the income collapse, so the difference is that savings actually picked up “, he added.
Therefore, spending on Black Friday and Christmas should be better this time around, he said.
When it comes to supply chain issues, he said, there is a significant risk, but the imports required for Black Friday and Christmas shopping are likely already in South Africa.
Siphamandla Mkhwanazi, senior FNB supply chain economist, said the bottlenecks are expected to persist for some time.
“This [bottlenecks] has resulted in delays in the delivery times of goods, in particular electronics and appliances, which can have a negative impact on the availability of stocks around Black Friday and during the holiday season and therefore on sales volumes ” , did he declare.
However, Mkhwanazi said he did not expect a sharp increase in retail prices because domestic demand is relatively weak.
“However, global supply distributions, as well as rising oil prices, pose an upside risk to the inflation outlook. Overall, we expect inflation to tend to rise. around the holiday season, but it is unlikely to exceed the upper target range, ”he said.