South African Consumers Are Concerned About Empty Shelves This Festive Season
With the holiday season quickly approaching, South Africans and consumers worldwide may find fewer gift options on store shelves as a result of product shortages and delays caused by pandemic-related closures of ports and factories.
According to a new global Oracle retail consumer research study, more shoppers are concerned that supply chain and delivery delays will wreak havoc on holiday gift shopping this season, while some consumers are opting to do their holiday shopping on Black Friday rather than wait until the holiday season.
“As we see in the news, supply chain challenges are a global reality,” said Mike Webster, SVP and General Manager of Oracle Retail. “That is why consumers are panic buying this holiday season in order to fulfill their loved ones’ wish lists and avoid empty store shelves.”
Problems with the supply chain
According to Oracle’s research, which polled 5,728 global consumers in September 2021, supply chain disruptions have left people frustrated, and 66 percent of consumers are concerned that this will ruin their holidays. As a result, 28 percent of consumers began their holiday shopping early, and 24 percent plan to begin their shopping earlier than usual.
Furthermore, 27 percent of respondents are concerned that the items they intend to purchase will be out of stock, 28 percent are concerned that the items will be more expensive, and 38 percent are concerned that the items will arrive later than expected.
This is the season for gift cards
With so much uncertainty in the retail world, it’s no surprise that 34% of consumers are thinking about buying more gift cards this year. This is also the gift that 37 percent of respondents said they would most like to receive.
In addition to gift cards, 26% of consumers said they intend to purchase more fashion apparel, home goods, and electronics. Beauty products were the preferred gift for 26% of respondents, while footwear was a close second for 22% of consumers.
Is it in stock or are you out of luck?
This holiday season, retailers’ popularity will be determined by their ability to deliver what customers want, regardless of the difficult environment. For example, 40% of consumers agree that out-of-stock items make for a bad shopping experience, while 38% are drawn to brands and companies based on product availability. Surprisingly, 22% of consumers said they would not wait for a retailer to restock before going elsewhere.
A sizable proportion of shoppers, 37%, said they would not wait until the holidays to buy their gifts and would instead take advantage of Black Friday sales, while 26% intend to shop for Cyber Monday deals.
Finding solace in store shopping
Despite concerns about the pandemic, 20% of consumers plan to buy in-store this year, a 15% increase from last year. Among those who are comfortable shopping in-store, 66 percent said mask mandates contributed to their comfort, 15 percent said proof of vaccinations would help, and 13 percent said social distancing protocols should be implemented.
“Accountability will be the watchword this holiday season.” Retailers must have complete visibility into their inventory, a realistic timeline for fulfillment, and a plan for clear communication throughout the order and delivery processes. Retailers can earn customers’ trust and build the potential for future loyalty through transparency and execution,” Webster concludes.
