A majority of retailers (95 percent) believe they will not be able to fulfill consumers’ holiday needs this year, according to Coupa Software, a company that helps retail businesses control spending and optimize their supply chains.
Coupa conducted an online survey in October of 602 people in management level or higher roles in consumer retail companies with more than 500 employees.
The survey also found that seven in 10 retailers anticipate that supply chain disruptions will negatively impact their company’s revenue.
A total of 93 percent of retailers worry a recession will reduce consumer spending, and 65 percent of retailers are currently understaffed.
In 2022, nine in 10 retailers experienced supply chain disruptions and are concerned one or more of their company’s suppliers will shut down. A total of 88 percent already discovered key holiday items were out of stock.
Inventory issues have been created by seasonal merchandise arriving late. To compensate for this, 33 percent of retailers have or plan to invest in additional inventory management tools, 55 percent have or plan to rush-order products, and 66 percent have or plan to over-order products. This means 90 percent of retailers are experiencing excess inventory.
Nearly all retailers, 90 percent, plan to offer fewer Black Friday and/or Cyber Monday deals.