Inventory Shortage Continues? Lack Of Inventory For Black Friday In 2021.


Staff Content Writer

November 26, 2021 • 2 minutes read

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Speaking of Black Friday, it’s definitely the most appealing and cheap deal for customers. However, the supply chain crisis and shipping disruptions has led to serious inventory shortages for retailers in the United States. Can these retailers really rack up money during Black Friday?

Massive inventory shortages

Due to Covid-19 and LA-LB port congestion, the level of inventories is lower than average. In particular, the inventory to sales ratio for retailers in September is only 1.09, as daily products and food are affected. The situation is getting worse because of Black Friday.

Lack of enthusiasm for shopping

Since more people have been vaccinated through 2021 and the Biden administration has attributed subsidies multiple times, people have more money and are more interested in buying furniture and electric appliances. Thus, retailers continue to break previous revenue records. Nonetheless, due to rising costs, retailers are unable to provide significant discounts to promote their Black Friday Sales, which may discourage people from purchasing. 

Unpleasant increase in the price of consumer goods

As carriers charge higher fees and raw material shortages persist, the extra cost may be passed on to consumers. For instance, the price of television is now 13% higher than it was a year ago. Moreover, even if retailers try to attract customers by giving discounts, the net price remains expensive for them.

What will happen, and how will the situation be in 2021 on Black Friday?
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