COVID has changed the way we do nearly everything, and holiday shopping is no exception. Creighton University Economist, Ernie Goss, says he is predicting a strong holiday buying season, but consumers are going to experience higher prices, fewer bargains and a lack of in-demand products. Goss points to supply chain disruptions, worker shortages and soaring inflationary pressures as the leading causes. Goss reports states within the Mid-America and Rural Mainstreet regions, which includes Iowa, are experiencing about 10 percent growth in net sales over the past year, but unfortunately, about half of that is due to inflation. Supply chain bottlenecks and labor shortages have 30 percent of supply managers reporting intentional hoarding or stockpiling of inventories to reduce further risk of supply chain disruptions. With the labor shortages, consumers can expect longer checkout lines and less customer service. However, Goss says many people will opt for shopping in-store this year to avoid unnecessary transportation delays and the high cost of fuel or shortages of goods. Goss adds that those consumers who shop early will be more likely to encounter good deals than those waiting until the last minute. In addition to the shopping forecast, Goss is predicting more individual and family travel over the holidays, but with more people driving than flying due to fears of flight delays and cancellations brought on by labor shortages. Forecasters are also predicting business travel will remain week throughout the rest of the year.
