WASHINGTON, D.C. (CNN) – The economic recovery from COVID has thrown a wrench in the supply chain, hitting businesses and then shoppers. In spite of it all retail sales continue to rise and the National Retail Federation said it’s feeling pretty good about the holiday season.
Between Thanksgiving Day and Cyber Monday this year, it expects there will be nearly 2 million more shoppers than last year and each shopper is projected to spend about a thousand dollars during the holiday season.
There are a couple of explanations at play. First: the fear factor. Because of supply chain issues, shoppers are getting the message: if you want it, buy it now. And 46% of shoppers say they plan to shop earlier than normal.
Economists say another reason people are spending is because they can.
Matthew Shay, CEO and president of the National Retail Federation said, “Consumers are healthy, $4 trillion in savings on the sidelines. They have paid down debt. We’ve seen 5 trillion dollars of fiscal stimulus.”
The National Retail Federation says it could be well into next year before issues with the supply chain are ironed out.