Don't Pout: Shoppers Blame the Government More Than Retailers for Supply Chain Issues

Although stress often intermingles with the festive spirit of holiday shopping, this season is shaping up to be more tumultuous than most. Covid-19 cases are declining, but the nation is still navigating through the pandemic. Retailers are stocking up on merchandise, but the threat of product shortages due to supply chain issues persists. On top of that, the National Retail Federation (NRF) predicts consumer demand will be stronger than ever—making the situation even more volatile. Shoppers are expected to spend between $843.4 billion and $859 billion during November and December, according to the trade association. That’s an 8.5% to 10.5% increase compared to last year, and an all-time high. "Retailers are making significant investments in their supply chains and spending heavily to ensure they have products on their shelves to meet this time of exceptional consumer demand," Matthew Shay, president and CEO of the NRF, said in a statement. The potential for error this holiday season, in other words, is high. Stores that stumble in providing people with a positive shopping experience and the goods they want run the risk of not only losing customers, but damaging their reputation, too. Who's to blame? In the court of public opinion, at least, retailers have one thing going for them as holiday shopping gets underway: Consumers place more blame on the government, logistics companies and other shoppers for product shortages than stores, according to new figures from intelligence company Morning Consult. When asked who's responsible for the lack of items such as cars, clothes, food and electronics, 56% of U.S. adults said the federal government deserves either a lot or some of the blame. More than half of the survey participants reported feeling the same toward logistics companies and people who overbuy. Meanwhile, 37% of respondents said stores deserve either a lot or some of the blame for out-of-stock products. "The good news for retailers and consumer brands is that they're close to the bottom of that list, just above weather patterns, as the source of blame," Claire Tassin, a retail and ecommerce analyst at Morning Consult, told Adweek. "Consumers are shaking their fists more at the federal government and what they could or could not do about this issue." Communication is key While the public might not direct its frustration over empty shelves at retailers, there's still plenty businesses can do to keep customers both happy and loyal. "People are trying to get a job done," Tassin said in reference to holiday shoppers. "They're trying to fulfill their mission, and whoever will help them do that is going to win." A recent report from consulting firm McKinsey & Company underscores the importance of communication and advises retailers to prompt shoppers to get a jumpstart on the season. “Since consumers won’t hesitate to shop elsewhere if they can’t find the products they seek, fulfillment will be critical,” the authors wrote. “Retailers should therefore encourage consumers to order early.” Collin Colburn, a senior analyst at research company Forrester, noted in a blog post that retailers should include shipping times in the ads they run on their apps and websites to set clear expectations and avoid disappointing shoppers. Additional numbers from Morning Consult show 44% of U.S. adults have yet to start their holiday shopping. Among those who have, around half have already encountered delivery delays or been unable to locate a product they want to purchase. Faced with low inventory and consumers eager to spend, some companies, such as the Hershey Company, are cutting back on advertising until the situation improves. "The supply chain challenges just wouldn't enable us to be able to meet the further demand that we would create through our very impactful advertising," Michele Buck, Hershey's chief executive, told analysts during a recent earnings call. "It just didn't make sense." Supply Chain Problems Are Less of an Obstacle for Retailers That Planned Ahead