(RightWing.org) – The country continues its struggle to restore its pre-COVID economy after nearly a year of setbacks. Interest rates are on the rise, and supply shortages are driving up demand and costs for goods. The outlook for many hometown businesses looks grim moving forward, as does the growth of online sales.
On October 20, Adobe Analytics released its Holiday Shopping Forecast insights report for 2021. Although Adobe predicts a 10% rise in online sales from November 1 to December 31, its overall projection portends a grim holiday season for online retailers this year.
U.S. online holiday sales will hit a record $207 billion from Nov. 1 to Dec. 31, rising 10% from last year’s holiday season, a survey by Adobe forecast.
The report predicted global online holiday spending of $910 billion, up 11% from 2020.https://t.co/rd1C3rlFfg
— TheStreet (@TheStreet) October 20, 2021
That’s because sales increased a record-setting 33% in 2020, largely due to increased online shopping trends related to store closures and other COVID-19 related variables. This year they are struggling to maintain that pace as things change.
Adobe Analytics also expressed concern regarding product availability as the country heads into the holiday season. Online retailers experienced a 172% increase in out-of-stock items on their websites at the end of July from levels reported pre-pandemic.
Additionally, online shoppers should expect to pay about 9% more for online purchases between Thanksgiving and Christmas this year. Product shortages are also driving online retailers to offer fewer sales items this holiday season.
Retailers are already encouraging shoppers to start purchasing holiday items early due to expected price increases and shortages.
Perhaps, now would be a good time for the Biden administration to start working on restoring supply lines.
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