Retailers Urge Consumers to Shop Now; New Survey Finds Nearly Three of Four Retailers Plan to Offer Fewer Black Friday Deals
SAN MATEO, Calif., Nov. 17, 2021 /PRNewswire/ -- There will be fewer deals this holiday season due to lingering supply chain disruptions that will continue impacting retailers through 2022, according to research from Coupa Software (NASDAQ: COUP), a leader in Business Spend Management (BSM).
A survey of more than 600 supply chain leaders at retailers in the US, UK, France, and Germany conducted in October by Sapio Research on behalf of Coupa found some revealing findings about supply chain disruptions.
Retailers anticipate revenue losses between 5
- More than half (
58% ) estimate losses over5% , while a quarter (26% ) expect losses greater than10% , and5% said they will be greater than20% . - The US is most affected with retailers reporting average losses of
5.7% , followed by the UK with5.3% , Germany with5.3% , and France with4.8% in average losses.
Holiday Revenues Will Be Hit Leaving Consumers to Shop Early & Pay Full Prices
- Nearly three of four (
71% ) retailers that usually offer Black Friday deals will not offer as many this year. - A quarter (
25% ) are saying they will offer between 25-50% fewer deals. - Ten percent are saying they will offer between 50
-75% fewer deals. - Nearly 2 of 3 (
63% ) are concerned that supply chain disruptions will affect their holiday revenue. - Sixty-seven percent are encouraging customers to shop early this year.
- Fifty-one percent are offering promotions earlier and
46% are displaying products even earlier.
Revenue Disruptions Go Beyond Holiday Season
There is broad agreement that supply chain issues will continue to be a long-term challenge with 9 of 10 retailers (
"Retailers are striving to meet demand, maximize revenue potential, and find efficiencies as they continue to face unprecedented supply chain disruptions. They are also encouraged to support key suppliers upon which they depend," said Madhav Durbha, vice president of supply chain strategy at Coupa. "To help overcome these omnipresent challenges, retailers are finding value in supply chain design and planning technology. They can stress test supply chains in real time, tear down silos, and eliminate blind spots across their businesses to outsmart disruptions."
Retailers Suffer a Perfect Storm of Disruption
Additional findings from the survey include:
- The top issues retailers reported facing are shortages and delays relating to shipping containers, followed by issues caused by 'long' supply chains, and driver shortages.
- In Europe, the impact of Brexit was also a significant factor - it was the top issue in the UK with nearly half (
46% ) of all retailers saying it has negatively impacted their business. Brexit also had a bigger impact in Germany than in France, with14% and9% of retailers being negatively affected, respectively. - More than half (
55% ) surveyed said they are either concerned or very concerned that their suppliers could close down due to financial struggles.
Survey Methodology
This research was conducted among 618 managers and above, responsible for the supply chain, at retailers in the US, UK, France, and Germany. The interviews were conducted online by Sapio Research on behalf of Coupa in October 2021 using an email invitation and an online survey.
About Coupa
Coupa empowers companies around the world with the visibility and control they need to spend smarter and safer. To learn more about how Coupa can help you spend smarter, visit www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.
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SOURCE Coupa Software
