SAN MATEO, Calif., Nov. 17, 2021 /PRNewswire/ -- There will be fewer
deals this holiday season due to lingering supply chain disruptions
that will continue impacting retailers through 2022, according to
research from Coupa Software (NASDAQ: COUP), a leader in Business
Spend Management (BSM).
A survey of more than 600 supply chain leaders at retailers in
the US, UK, France, and
Germany conducted in October by
Sapio Research on behalf of Coupa found some revealing findings
about supply chain disruptions.
Retailers anticipate revenue losses between 5-20% from the past
18 months due to supply chain issues, translating into billions
lost for some of the world's biggest economies.
- More than half (58%) estimate losses over 5%, while a quarter
(26%) expect losses greater than 10%, and 5% said they will be
greater than 20%.
- The US is most affected with retailers reporting average losses
of 5.7%, followed by the UK with 5.3%, Germany with 5.3%, and France with 4.8% in average losses.
Holiday Revenues Will Be Hit Leaving Consumers to Shop Early
& Pay Full Prices
- Nearly three of four (71%) retailers that usually
offer Black Friday deals will not offer as many this year.
-
- A quarter (25%) are saying they will offer between 25-50% fewer
deals.
- Ten percent are saying they will offer between 50-75% fewer
deals.
- Nearly 2 of 3 (63%) are concerned that supply chain disruptions
will affect their holiday revenue.
- Sixty-seven percent are encouraging customers to shop
early this year.
-
- Fifty-one percent are offering promotions earlier and 46% are
displaying products even earlier.
Revenue Disruptions Go Beyond Holiday Season
There is
broad agreement that supply chain issues will continue to be a
long-term challenge with 9 of 10 retailers (91%) anticipating
revenue will continue to be impacted by supply chain issues for at
least the next six months.
"Retailers are striving to meet demand, maximize revenue
potential, and find efficiencies as they continue to face
unprecedented supply chain disruptions. They are also encouraged to
support key suppliers upon which they depend," said Madhav Durbha, vice president of supply chain
strategy at Coupa. "To help overcome these omnipresent
challenges, retailers are finding value in supply chain design and
planning technology. They can stress test supply chains in real
time, tear down silos, and eliminate blind spots across their
businesses to outsmart disruptions."
Retailers Suffer a Perfect Storm of
Disruption
Additional findings from the survey include:
- The top issues retailers reported facing are shortages and
delays relating to shipping containers, followed by issues caused
by 'long' supply chains, and driver shortages.
- In Europe, the impact of
Brexit was also a significant factor - it was the top issue in the
UK with nearly half (46%) of all retailers saying it has negatively
impacted their business. Brexit also had a bigger impact in
Germany than in France, with 14% and 9% of retailers being
negatively affected, respectively.
- More than half (55%) surveyed said they are either concerned or
very concerned that their suppliers could close down due to
financial struggles.
Survey Methodology
This research was conducted among
618 managers and above, responsible for the supply chain, at
retailers in the US, UK, France,
and Germany. The interviews were
conducted online by Sapio Research on behalf of Coupa in
October 2021 using an email
invitation and an online survey.
About Coupa
Coupa empowers companies around the world
with the visibility and control they need to spend smarter and
safer. To learn more about how Coupa can help you spend smarter,
visit www.coupa.com. Read more on the Coupa Blog or follow @Coupa
on Twitter.
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SOURCE Coupa Software