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Retailers experiencing Christmas product shortages; might need to raise prices

(kfyr)
Published: Oct. 14, 2021 at 6:01 PM CDT
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BISMARCK, N.D. (KFYR) - The supplies shortages continue for businesses. This time it’s hitting Christmas.

Décor and both real and artificial Christmas trees will be hard to come by due to supply issues and extreme weather in the Pacific Northwest and Midwest.

Supply chain issues at ports and shipping container shortages are the reasons for the shortage, according to the American Christmas Tree Association.

Kirkwood Ace Hardware owner Jeff Hinz says 75 percent of Ace Hardware’s ordered product has been put on ships. But, he says whether or not it gets here on time is still in question. He says the remaining 25 percent that hasn’t been shipped yet definitely won’t make it by the holiday shopping season.

Hintz says the majority of items listed as “red,” or not shipped, have been artificial trees.

“There’s a container shortage, a ship shortage, they can’t get things unloaded. That’s the problem here. And then, it is all over the place whether this stuff is going to come or not. Decorations are going to be the issue,” said Hinz.

Due to these issues, Hintz says his wholesalers raised prices by 12 percent, so he will likely have to pass that on to the customers to make a profit.

According to the American Christmas Tree Association, most other retailers will have to raise prices by 20 to 30 percent. Hinz says he starts ordering Christmas inventory for each year before the prior holiday season. He says that means the shortage could happen again next year.

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