Business
Good Luck Finding Deals This Year With All the Supply Chain Chaos
Strong demand plus limited inventory should fatten profit margins—and pinch wallets.
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Christmas holiday discounts have become a ritual of U.S. retailing, with shoppers lining up outside malls on the day after Thanksgiving hoping to snag a deal for $19 air fryers or cheap flatscreen TVs. Even during the pandemic, the traditional yearend dash for deals continued, as shoppers accustomed to price cuts of up to 40% simply shifted to ordering online. But U.S. retailers are making a risky bet this holiday season by cutting back on discounting.
Their calculation is a simple one. Many merchants are forecasting demand to be strong, while gummed up supply chains translate into having less inventory to sell. That means there’s no need to be as promotional as during Christmases past.