A snarled supply chain and high inflation levels could mean that Black Friday bargain hunters might not see as many gangbuster deals as they usual would.
Bryan Cannon, CEO and chief portfolio strategist for Cannon Advisors, said that shoppers may not see as many great deals in 2021 as in previous holiday seasons due to the supply chain constraints as a result of Covid-19 and labor shortages.
Rising shipping and material costs rise will have a direct impact on the prices consumers pay at check out, he added.
"The consumers who were financially unimpacted by the pandemic fallout will continue to shop as usual," Cannon said. "however, those who lost their jobs and are feeling the pinch from inflation will scale their shopping back this year
Cannon said that it will be "a very bifurcated shopping year for sure," with those unaffected compared with "those who are pinching pennies to put gas in their car or food on their table."
"As a result, you could see higher-priced ticket items and lower-priced ticket items fly off of the shelves this holiday season," he said.
Patrick Gourley, an assistant professor at the Pompea College of Business at the University of New Haven, said that “so far, demand is doing fine.”
“In fact, the demand for goods is partially responsible for the inflation in the first place,” he said. “As consumers demand more and more, prices rise.”
Gourley said the bigger issue with holiday shopping is going to be possible delays in shipping and delivery of goods.
“I recommend that all consumers get their Christmas shopping done early,” he said, “as some items are certainly going to be delayed in transit and shelves could be even more picked-over than usual come mid-December.”