Retailers are still dealing with supply chain challenges due to the Covid-19 pandemic, so Australians are being advised not to delay their Christmas shopping until the last minute.
On Monday, the Australian Retailers Association, representing over 50,000 shopfronts, asked buyers to plan their shopping to prevent disappointment.
Tightened Covid restrictions in China, as well as the temporary closure of one of the world’s busiest ports, have prompted deep worry about the impact on global supply chains, according to Australian Retailers Association’s chief executive Paul Zahra.
He also added retailers had reported that the incoming flying cap had put a lot of pressure on shipping. At the same time, container costs had risen to four times their average level, a factor that is expected to affect retail pricing.
In light of the situation, Mr Zahra advised shoppers to plan ahead and not wait until the last minute to do their Christmas shopping. When it comes to online shopping, he advised to be well planned on time, for the products to be shipped and transported.
The Reject Shop, a discount retailer with over 350 locations across the country, says it took a $9m hit from overseas shipping costs for the fiscal year 2021. The company previously stated that costs would most likely remain high for the rest of the year.
In anticipation of a short supply, some retailers have increased their stock levels.