How Supply Chain Issues Affect Small Businesses in Sacramento Before the Holidays

2021-11-25 06:49:04 By : Mr. David Ding

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As the global supply chain crisis continues, retailers in the Sacramento area are striving to meet consumer demand in the upcoming holiday season.

"We are trying to stay optimistic," said Brian Lawrence, president of the Emigh hardware store in Sacramento. "We are now waiting at the Christmas tree. Hope they will be here in the next few weeks."

For months, these trees and other holiday supplies have been trapped on cargo ships docked in Los Angeles and Long Beach.

"Usually [our inventory] is in October," Lawrence said. "It's about mid-November to late November."

At this time of year, the shelves that are usually filled with Christmas lights are now three-quarters or half full. The store also found a shortage of any products with metal or plastic parts.

"We usually have more hacksaw blades, and now we only have a few," Lawrence said. "We are trying to switch to and get products from different suppliers."

Shipping delays can also cause seasonal inventory problems. Lawrence said he had just received outdoor furniture for the summer. Now, he must figure out how to sell them in the fall and winter.

"We are doing our best to maintain price competitiveness," Lawrence said. "We used to spend between 3,500 and 4,000 US dollars to get a container from overseas. Now, it costs more than 20,000 US dollars to ship a container here."

A small local gift shop Mixed Bag in the city center also felt the pressure of shipping delays and labor and inventory shortages.

"It's very uncomfortable to say the least," said shop owner Linda Novi.

Her store only receives Halloween inventory on the Thursday two weeks before the holiday.

“We ordered more than usual because we knew that if we ordered 100 pieces, we were lucky to get 50 pieces,” Novi said.

Due to rising shipping costs, her store is doing everything it can to protect customers from rising prices.

“In the past, each container shipped from overseas required US$3,000 to US$4,000,” Novi said. "The price of each container is now between 15,000 and 16,000 US dollars. Our freight rates have increased unbelievably."

Mixed Bag is still waiting for items ordered 10 months ago.

"We ordered products from many suppliers in January, but we still haven't [received these products]," said Wendy Gray, the store manager.

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