Big discounts could hit consumers in January as the supply chain challenges that have plagued the holiday shopping season ease.
The supply chain problems stemmed from a bottleneck of hundreds of container ships at the California ports of Los Angeles and Long Beach that could not unload due to a nationwide shortage of truck drivers.
In an attempt to resolve the issue, the Biden administration announced that the ports will move to 24/7 operations to ensure the holidays are not interrupted by the supply chain crisis.
However, due to supply chain issues, many shoppers have found empty shelves this holiday season as product shortages have pinched retailers who have been unable to secure their stock of merchandise to meet demand. of consumers.
This has resulted in fewer offers for consumers over the holidays, but now that the backlog of products is heading to retailers, shoppers are enjoying a wave of discounts in January that could mean big savings.
Mark Cohen, director of retail studies at Columbia Business School, said CBS News, “It is the age-old problem of liquidation of stocks that will make itself known in the form of heroic discounts.”
“I think it has already started and will resume in the last days of December when it becomes untenable to ship things. Faced with a bit of cold because of Omicron, retailers are starting to empty the goods, ”he added.
Historically, Black Friday has brought the biggest discounts for shoppers, but this year has been a light year in terms of offers for consumers.
Karthik Bettadapura, CEO of retail data and pricing analytics firm DataWeave, told CBS News that discounts were down in November for many products.
According to Bettadapura, only 8% of electronic products were given a discount, up from 13% the previous year, and only 3% of home furnishings were given a discount on Black Friday, against 26% in 2019.
But retailers are expected to dramatically reduce the prices of many products as they make room for the arrival of spring merchandise, with discounts on merchandise such as sweaters, boots, and coats.
“I see more and more frantic last minute deals with bigger discounts on the internet, all based on the idea that we have to sell this product now, because anything we hold will lose a substantial amount of its value,” Cohen told CBS News.
Greg Buzek, founder and chairman of research and consulting firm IHL Group, said shoppers are likely to get discounts two and a half weeks after Christmas, after retailers expect shoppers to spend their cards- holiday gifts.
“There won’t be any direct discounts because retailers know there are a lot of gift cards out there, so there’s no reason to go crazy and give discounts early on. After that is when you really go to see it, ”said Buzek.