The National Retail Federation has delivered a letter to the White House asking to meet with President Joseph Biden and other top administration officials about the challenges retailers face from continued supply chain disruptions and congestion at critical ports in the United States.
NRF recently revised its annual retail sales forecast, estimating growth of between 10.5% and 13.5% to more than $4.44 trillion in 2021 as the economic recovery from the COVID-19 pandemic accelerates.
The letter from NRF president and CEO Matthew Shay states, “The supply chain disruption issues, especially the congestion affecting our key maritime ports, are causing significant challenges for America’s retailers. The congestion issues have not only added days and weeks to our supply chains but have led to inventory shortages impacting our ability to serve our customers. In addition, these delays have added significant transportation and warehousing costs for retailers.”
Consumer demand for goods continues to grow, as indicated by import flow during the busiest April on record at the largest U.S. retail container ports, but the supply chain challenges remain significant. In a recent survey of NRF member companies on the congestion situation, more than 97% of retailers surveyed said they have been impacted by port and shipping delays.
“In many instances retailers will absorb these costs and not pass them along to consumers. However, many smaller retailers may have no choice but to pass along these costs, especially as they face other challenges with reopening their businesses,” Shay noted.
