Stores kick off Black Friday but pandemic woes linger

NEW YORK (AP) — Retailers are expected to usher in the unofficial start to the holiday shopping season Friday with bigger crowds than last year in a closer step toward normalcy. But the fallout from the pandemic continues to weigh on businesses and shoppers’ minds.

Buoyed by solid hiring, healthy pay gains and substantial savings, customers are returning to stores and splurging on all types of items. But the spike has also resulted in limited selection across the board as suppliers and retailers have been caught flat-footed.

Shortages of shipping containers and truckers have delayed deliveries while inflation continues to creep. The combination of not finding the right item at the right price — in addition to a labor shortage that makes it more difficult for businesses to respond to customers — could make for a less festive mood.

At Macy’s Herald Square store in Manhattan, shelves were stocked and shoppers were steadily streaming in at 6:30 am, a half hour after the doors opened.

Aniva Pawlowski got to Macy’s just ahead of the 6 a.m. opening with plans to buy shoes and coats. Shopping on Thanksgiving Day had been a family tradition, but she stayed home last year and just shopped online. Worries about shortages drove the New Yorker to shop in person and she plans to spend about $1,000 on holiday shopping, similar to years past, even though she’s concerned about rising costs for gas and food.

“Everything is expensive,” she said.

Shoppers are expected to pay on average between 5% to 17% more for toys, clothing, appliances, TVs and others purchases on Black Friday this year compared with last year, according to Aurelien Duthoit, senior sector advisor at Allianz Research, with the biggest price increases on TVs. That’s because whatever discounts available will be applied to goods that already cost more.

“I think it is going to be a messy holiday season,” said Neil Saunders, managing director at GlobalData Retail. ”It will be a bit frustrating for retailers, consumers and the workers. We are going to see long lines. We are going to see messier stores. We are going to see delays as you collect online orders.”

Big retailers have been preparing for the holiday season, trying to find workarounds to supply chain hold-ups. Some of the biggest U.S. retailers are rerouting goods to less congested ports, even chartering their own vessels.

“We are deep and we are ready,” Macy’s CEO Jeff Gennette told The Associated Press, noting inventory levels are up 20% compared to last year. “We are in good shape.”

But at a Best Buy in the Denver suburb of Lone Tree, one shopper couldn’t find what she wanted.

“The thing that I came in for is already out of stock both in the store and online,” said Addi Vanderbeld while browsing Apple laptops. “Now I am looking around just to try and find something to make the best of getting up at 4 a.m. to get down here.”

While Black Friday has a strong hold on Americans’ imaginations as a…