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Gourmet Business July '21

Gourmet Business July '21

You Better Stock Up For These Holidays

I have enjoyed getting back out to the trade shows in recent months, and catching up with my friends in the business, and swapping stories on recent happenings.  The great news I am hearing is that business has been quite good in the industries that we serve.  However, I am also hearing frequently that all the money coming in the door isn’t necessarily staying in the bank account at present. There does exist a variety of supply chain problems that have caused costs to escalate to such a degree that some suppliers are going to have to respond with price increases.

The biggest problem right now is in the area of overseas freight shipments that have frustrated a good many suppliers that sell products made in Asia.  In some cases, the product is made, but there are not enough containers leaving port to keep up with the orders ready to be dispatched to our country, creating a back log.  If a supplier is fortunate enough to receive confirmation of an open spot on a ship sailing to America, they are getting quoted artificially inflated prices since the demand has outpaced the supply.

What does this mean for retailers as we move into the important holiday season?  I do believe that the notion of just in time inventory is important for retailers to strive for, but I think this year may be the exception to the rule.  I think it will be wise this year to stock up on the items that you are most excited about or that have a relatively high rate of historical sales in your retail environment because you may not get another shot this year to order the items in again.

If your going to attend the Las Vegas Market Summer show next month, you should be prepared to order early, increase inventory levels of key items, and don’t get frustrated with your retail trading partners if they run out of stock because it’s likely out of their control.

See you in Vegas!

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