Shortage of goods, rising commodity prices, reduced holiday discounts... UK consumers have had to contend with supply chain delays and rising inflation in the run-up to Christmas.
The Wine and Spirit Trade Association, a British business group, said in a statement that processing imported goods was taking several times longer than a year ago because of rising costs and supply chain disruptions. It called on the government to take "urgent action" on the shortage of HGV drivers and disruption to freight to avoid a shortage of alcohol over Christmas.
Gary Grant, founder and executive chairman of UK toy chain Entertainer, said his company was receiving about 10 per cent fewer containers than normal, "something I have never seen in my 40-plus years of selling toys". Mr Grant attributes this to rising inflation, higher transport costs and limited factory capacity.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said that despite huge efforts by retailers to ensure Christmas supplies, the problem was still unresolved. "Labour shortages across the supply chain, from farms to distribution, are driving up costs and creating some shortages on the shelves."
The British government put forward a package of measures in September to address the shortage of big lorry drivers, including short-term visas for foreign big lorry drivers. But many businesses and businesses see the government's measures as a band-aid measure that doesn't address the underlying problem.
In addition, businesses and consumers are feeling increasing inflationary pressures. The UK's consumer price index rose 4.2% in October from a year earlier, the fastest rise in a decade, driven by higher energy costs, according to the Office for National Statistics. Grant Pfitzner, the agency's chief economist, blamed higher household energy bills and higher factory production costs for the high inflation.
Paul Martin, head of UK retail at KPMG, said that with rising costs and inventory pressures, "we are unlikely to see any significant discounting this Christmas".