“[W]e are now projecting that our regular carriers will fulfill only 60% to 65% of their commitments and their spot market rates will be much higher than previously estimated,” said Dollar Tree Chief Executive Michael Witynski on the earnings call, according to a FactSet transcript.
Amid myriad troubles, experts are optimistic about the coming holiday season.
“The consumer has continued to be resilient and recent price increases brought on by constraints in the supply chain have not dampened the robust demand seen during the past year,” said Jack Kleinhenz, the National Retail Federation’s chief economist, in a recent report .
In the view of Mastercard SpendingPulse, retailers have learned a lot over the past couple of years and will put that to use in the coming months.
“This holiday season will be defined by early shopping, bigger price tags and digital experiences,” said Steve Sadove, senior adviser for Mastercard, in a statement.
Retailers and other organizations are gearing up. Seasonal hiring announcements have recently come from Dick’s Sporting Goods Inc. /zigman2/quotes/200566298/composite DKS -0.65% , the U.S. Postal Service and others. Some 125,000 logistics hires are being targeted by e-commerce giant Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN +0.16% , the company announced Tuesday .
“While consumer concerns about health and safety have eased since the last holiday season, pandemic-influenced shopping behaviors continue to gain traction,” said Rod Sides, vice chairman of Deloitte LLP and U.S. retail and distribution sector leader, in a statement.
“Retailers who remain resilient to shifting consumer behaviors and offer convenient options for online and in-store shopping, as well as order fulfillment, will be poised for growth this holiday season, and into the new year.”
The SPDR S&P Retail ETF /zigman2/quotes/206947004/composite XRT -0.73% has soared 44.5% to date in 2021. The Amplify Online Retail ETF /zigman2/quotes/206522380/composite IBUY -0.36% has slipped 0.7%. The broad market benchmark S&P 500 /zigman2/quotes/210599714/realtime SPX -0.58% has gained 19.3%.