BLOOMINGTON, Ind. –– Shopping may look a little different this holiday season, but an economist predicts businesses will fare pretty well this year.
The U.S. economy has been hampered of late with supply chain issues and higher inflation on certain products, which has forced many Americans to rethink this holiday shopping strategy. But John Talbott, Director for the Center of Education and Research in Retail at the IU Kelley School of Business, isn’t worried about businesses feeling adverse effects from it.
“CEO of those companies have made it very clear that ‘we’ve gone through a number of extraordinary measures’ to make sure that our ships got emptied and our shelves are full,” Talbott told Inside Indiana Business. “But, I’m not sure that’s going to be the same for all levels of retail.”
Talbott says one thing you will likely notice is a lack of holiday discounts. He says because of the current economic climate there is not a lot of “incentive to compete on price.” Talbott clarifies that companies plan months in advance for Black Friday and Cyber Monday promotions, but once those go away it’s harder to predict want they can and cannot place a discount on.
He said that one way you can help businesses have a good holiday season is by buying gift cards.
“I like gift cards, especially for smaller retailers, who may have more of a challenge in getting the things that they need and also particularly being able to replenish on those items,” Talbott said. “For them to get the assurance of that revenue in the bank and then have the opportunity to work with their suppliers to get those good in and they still get the cash with is great for small players.”
Talbott predicts that it will be a much better year, especially compared to last year, for businesses on all levels of the economy.
