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Retailers dream of a glitzy Christmas, even as supply chain snarls loom -Breaking

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© Reuters. FILEPHOTO: Macy’s New York City flagship shop is visited by shoppers, New York City. May 20, 2021. REUTERS/Eduardo Munoz

By Mimosa Spencer, Richa Naidu and Arriana McLymore

PARIS/CHICAGO/NEW YORK – Whitney Bromberg Hawkings started Flowerbx Floral in Los Angeles, a flower shop based in London. She noticed that many people were treating themselves to flowers when they went on holiday.

“There were cards that said ‘Dear me, you can get through this week’— a lot of them,” said Bromberg Hawkings. This year, it’s a different story: It’s dinner for 30, dinner for 40, full-house decor.

“We’ve had a few people in New York and L.A. who want the whole house done – garlands on the outside, garlands on the inside, wreaths.”

Due to shipping delays and the worldwide supply chain crunch, retailers cannot bet on holiday moods.

Balsam Hill’s artificial trees are used in many high-end stores and malls. Year-over-year, the company has seen a 64% increase in unit sales for its top-quality trees, which range from $500 to $2,000, on a revenue basis. According to its chief executive, the company has spent at least $1,000,000 so far in this year for fees related to delayed cargo. This is eating into its profits.

Neiman Marcus to Macy’s Home Depot (NYSE:) Several major retailers have told Reuters they anticipate shoppers going all out at social gatherings, despite being kept away from the public by Covid-19 last year.

“After being limited by Covid-19 restrictions, people want to travel, spend more time out enjoying outdoor activities, express themselves and above all live and share experiences,” Remo Ruffini, Moncler’s chairman and CEO, said.

Many people are entering the holiday period with more money, as they’ve saved through lockdowns and now have it in their pockets. London saw its lowest close in 20 years this week as the index hit new records.

“We’ve noticed a party theme,” added Macarena Blanco, fashion editor of Heuritech, a data firm analyzing about 30,000 pictures a day on social media, mainly Instagram and TikTok.

However, retailers face a supply-chain crisis which leaves them scrambling for sparkling wine, partywear and scented candles. In addition, the new AY.4.2 “Delta Plus” coronavirus variant looms, after causing some concern in the United Kingdom.

“One of the big trends that we’re seeing across the board is maximalism, which is really about ‘more is better’ and more opulence – it’s embracing colors and embracing patterns,” Sarah Fishburne, Home Depot’s director of trend and design, told Reuters. But in September, Home Depot during its quarterly earnings call said “raw material shortages, production constraints and pressures across modes of transportation are creating a difficult supply chain environment.”

Rival Lowe’s (NYSE:) echoed this in October, saying second-quarter inventory was $17.3 billion, down $1.1 billion from the first quarter. However, Bill Boltz of Lowe’s merchandising said that shoppers will be looking for big deals this season. We are expanding our product selections. As an example, this year we will have a larger offering of artificial trees over 8 feet for those looking to fill a larger room.”

‘TIS THE SEASON TO SPARKLE’

U.S. department store Nordstrom (NYSE:) recently blasted customers with an email urging them to “go full-on glam in sequins, metallics and more” and “dress to impress,” saying “tis the season to sparkle.”

But the previous week, the retailer alerted customers about global supply chain challenges and shipping delays, warning that the “hottest gifts may sell out on our site and that shipping could take longer than we’d all like.”

Festive fashion apparel has already been selling out, according to market intelligence platform Edited, which notes a 236% increase in full-priced garments selling out between July and October this year, globally, which has led fewer options for consumers shopping online in the United States – about half compared with the same time last year.

Macy’s is banking on its customers picking up metallic bags and shoes, velvet blazers and pearls among a string of fancy partywear. Macy’s is one of many retailers who have had to make significant investments in strengthening their supply chain to import these goods into the country.

Macy’s said it is using multiple ports to reduce congestion, running its fulfillment centers 24/7, partnering with shipping giant Makers to efficiently pull product out of ports, and hiring more than 20,000 additional fulfillment center workers.

Blanco from Heuritech said designers have been influenced by glitzy textiles with sequins and references to the Nineties, as well the scene in 2000. For the season ending, Blanco noted a surge in fashion trends such as glitter boots which have increased 15% from last year and feathers up 42%.

Even Hello Kitty is getting jazzed up for the season, with a gold lightning streak added to her famous bow for L’Oreal’s upscale Japanese label Shu Uemura.

This popular model is featured in promotional materials featuring products like a disco-glam eye palette with Fernanda Li and glitter ball highlighter. Fernanda Ly was dressed in a sparkling corset as well as a kimono.

“After a spell when we were all cut off a bit from the world, we want to celebrate, to have fun and share with others,” said fashion designer Christelle Koche. According to the designer, she wants to shine a spotlight on individuality and offers a variety of velvet fitted dresses.

Lana Todorovich, president and chief merchandising officer of Neiman Marcus, described the emergence of “dramatic and unapologetic style” from consumers heading into the holiday season, citing the popularity of pieces embellished with sequins and feathers from labels like Balmain and Tom Ford.

According to Euromonitor, global sales of designer clothes are forecast to reach $90.16 billion. This is an 11.6% increase over last year, but about $10 billion less than before the Covid-19 pandemic.

Mindful of the risk of running low on stocks, Meghan Fabulous, an apparel manufacturer drawing on production sites in India, China and Los Angeles, purchased more green and red festivewear for the upcoming season than last year, and currently has some 10,000 dresses “floating on container ships in the Pacific Ocean” as of early November.

Chief Executive Steve Dunlap said he’s concerned they won’t arrive before January.

“That’s my nightmare scenario. They’ll sell, but most of them will sit there until holiday season 2022 if that happens.”



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