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U.S. retailers battle high costs clearing Christmas stockpiles
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Holiday decorations along the Fifth Avenue in New York, U.S., December 2, 2021. /CFP
Holiday decorations along the Fifth Avenue in New York, U.S., December 2, 2021. /CFP

Holiday decorations along the Fifth Avenue in New York, U.S., December 2, 2021. /CFP

U.S. retailers are hustling to sell their stockpiles of Christmas decorations as the festive season approaches, after tangled supply chains caused many shipments to arrive only after the holidays last year. 

The COVID-19 pandemic disruptions led to a shortage of shipping containers, along with delays at ports from a lack of workers to unload products and transport them to retailers.

It was "very difficult with supply" last year, especially to procure enough Christmas trees and products for customers, said Chris Butler, CEO of decorations seller National Tree.

"This year is a little bit of the opposite," he told AFP.

"Every retailer, every manufacturer has a lot of trees, has a lot of garlands because everything came late," he added.

Due to supply chain problems, retailers said part of their festive decorations arrived only in January or February.

But with soaring consumer prices weighing on household budgets, business executives have expressed concern that customers may tighten their purse strings.

"Consumers might not spend as much," Butler said.

Inflation in the U.S. rose 8.2 percent from a year ago in September, and the elevated figure triggered concerns that price pressures have become more ingrained.

Customers have "become increasingly price-sensitive as the year has progressed," Chris Cocks, CEO of toymaker Hasbro told an earnings call this month, adding that promotions "will be key in the quarters ahead."

Some toys have become about 15 percent more expensive due to inflation, said James Zahn, editor-in-chief of trade publication The Toy Book.

"That is going to make a difference for families that are already feeling a pinch when groceries and fuel are more expensive," he said.

(Source: AFP with edits)

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