US Consumers Are About to Have a Bad Time

US Consumers Are About to Have a Bad Time

( – If anyone has forgotten that prices are higher than they were even a year ago, the holiday season will undoubtedly remind them. Christmas is often an expensive time anyway, but the inflated prices don’t help. As the world heads into the new year, it doesn’t seem like it’s getting any better soon.

A recent study that Skynova conducted shows how the pandemic and labor shortages have impacted businesses. What’s that got to do with prices? These negative impacts are forcing businesses to increase their prices by an average of 6%.

It may not seem significant, but it adds up.

The Skynova study, which included results from 686 employees, managers, and business owners, found that 33% of workers quit before Christmas. Evidence also suggested that only 43% of companies diligently attempted to hire new workers before the holidays. Another 43% said they needed to hire new employees for both seasonal and full-time positions.

Nearly 30% of businesses — particularly retailers — had to bump their prices up to diminish the labor shortage’s impact on their bottom line. Some companies resorted to offering seasonal and sign-on bonuses, and professional development opportunities just to attract staff.

Of the business owners, 43% anticipated sales issues and relied on pre-sales such as gift cards, off-season deals, and preorders. Of those focused on pre-sales, 34% called the strategy very successful. Another 56% noted it was only somewhat triumphant.

High holiday season pricing isn’t likely to go away anytime soon. Consumers can expect to keep paying inflated prices until businesses discover ways to handle the extreme labor shortage and supply chain struggles plaguing the US.

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