The UK faces the risk of a supply shortage during the year-end shopping season

The UK faces the risk of a supply shortage during the year-end shopping season

Retailers in the UK are having to plan to cope with shortages of goods for the year-end shopping season, especially Christmas, due to the impact of global supply chain disruptions.

The UK faces the risk of a supply shortage during the year-end shopping season

According to the Vietnam News Agency correspondent in London, in recent weeks, supply problems in food distribution leading to shortages on supermarket shelves have caused anxiety for both businesses and consumers. consumption. For non-food businesses, they are facing a similar situation in planning and stocking products for the year-end shopping season, which is considered the most important period of the year.

Gary Grant, founder and executive chairman of The Entertainer, which operates more than 170 toy shops in the UK, said: “I’ve never seen such a bad situation in my more than 40-year career. “. He cites cargo inflation, high shipping costs, container sourcing issues and factory capacity constraints as issues his business is facing.

The shortage of containers at China’s seaports and the congestion of the Suez Canal caused by the transport vessel Ever Given earlier this year are believed to be the main causes of congestion as well as the supply chain. “Factors in China are congested so they just do what has been ordered,” Mr. Grant said.

A senior executive at a major UK retailer says his company is “working with suppliers to get the best they have, even if they are not always available”. what we want.”

“We are about eight weeks behind (in terms of Christmas stock) at the moment,” he said. There is, of course, a certain margin of safety, but if the disruption is prolonged it will not be possible to guarantee the cargo.”

Even air transport is facing difficulties due to the limited cargo capacity on passenger flights and the additional COVID-19 related precautions recently applied at many Chinese airports have made reduce productivity as well as increase costs.

Toys, bicycles and large household items will be the most affected items in this wave. As for consumer electronics, although less affected by freight issues, it is affected by the global shortage of semiconductor chips.

Although the shortage of shipping containers has basically been resolved, freight rates are still high and containers are often stuck at ports due to a shortage of truckers to transport inland UK.

Dan Myers, shipping executive for XPO Logistics in the UK and Ireland, warned that Christmas supplies will be “difficult” for retailers unless the UK government changes. decided not to hire more drivers in the EU. So far, the British Government has still rejected the proposal to add truck drivers to the list of shortage occupations after Brexit, and it is estimated that the UK is currently short of 100,000 truck drivers.

Some retailers say the range of goods may be smaller and the discount less. As a result, with this year’s Black Friday program, the biggest sale of the year, UK consumers will have fewer choices for their favorite brands or products.

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