Supply chain problems, earlier Christmas shopping could lead to empty shelves, higher prices: economist | The Canadian News

With many still at home amid the ongoing COVID-19 pandemic, anxious shoppers are already shopping for their holiday gifts, but supply chain problems around the world mean long wait times.

You may want to get started on that shopping list earlier than expected.

It’s not even Halloween yet, but many are already getting into the holiday spirit. Prairie Proud clothing in Saskatoon said last year people started their Christmas shopping in October.

This year is no different. However, the pandemic is affecting supply chains, according to some economists, and the impact is trickling down to smaller companies.

“We’ve really seen problems in terms of regular lead times, say four to five weeks on some of the custom products, which is closer to eight to 10 weeks,” explained owner and founder Cole Thorpe.

Many supply problems right now have to do with staffing, according to economist Jason Childs.

For example, some trucking companies have trouble attracting drivers. The bottleneck effect is causing longer wait times.

“So anytime demand exceeds supply, consumers and buyers can respond in two ways,” Childs explained. “They can offer to pay more … or they can compete with each other trying to be first.”

Childs said many are trying to get their gifts first. As the holiday season approaches, he said this could lead to shelves being emptied or more items being resold.

“(We were able to see) a thriving secondary market where the people who acted first and got one of these were selling it for two, three or four or more times the normal retail price,” Childs said.

Ecommerce company Rakuten suggests that shoppers shop, plan for what they really want, and get those items quickly.

“Waiting until the end of November, the beginning of December… will be more stressful than ever. Because of those wait times, people who start now are going to win this year, ”said general manager Jennifer LaForge.

For small businesses like Prairie Proud, they said they are being transparent with customers about the longer wait times.

Economists say you have to be patient and enjoy time with your loved ones for the gift it gives.