The Effect of Christmas on the Shopping Industry

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Shoppers swarm at the Pavilion Kuala Lumpur, which has the largest Swarovski Christmas tree in Asia.

Hannah K '22, Opinions Section Editor

With Christmas being the season of giving, the holiday has undoubtedly affected the shopping industry. Parents scrambling to buy the perfect toys or books for their children, friends rushing to buy the best make-up products on sale. Undoubtedly, Christmas is one of the largest economic stimulus all around the world, last year’s holiday retail sales projecting to about 750 billion U.S. dollars. Even with the pandemic!

However, this year, it seems like the supply chain issues will be the one affecting the holiday season. Already three months in advance, in September, cargo has been delayed and the prices have been skyrocketing. As the transportation costs increase and the weather conditions become unpredictable, retail stores are facing product shortages, ultimately affecting the supply chains.

In courtesy of Adam Jeffrey, CNBC
A customer shops during the holiday season at Target during the COVID-19 pandemic.

With the second holiday season approaching during the COVID-19 pandemic, retailers face an overwhelming problem with e-commerce orders. Somdutta Singh, CEO and founder of Assiduus Global, a multiplatform e-commerce supply chain and distribution company, reveals that the holiday season often results in a “[bottleneck]” effect. As millions of orders and products are processed through parcel shipping, the parcel processing and delivery begin to slow down. This ultimately results in longer arrival times and difficulty in perfectly assessing the arrival dates.