New Supply Chain Disruptions Worry Retailers

Retailers and suppliers say the supply chain challenges that began with the pandemic are persisting, and they have little confidence that improvements are coming.

Beverages were particularly a challenge in second quarter, with 72% of retailers reporting supply disruptions of packaged beverages and 67% reporting supply challenges with beer. Also, two in five industry suppliers (38%) said they faced “significant” levels of disruption for materials necessary to create their products.

Compounding inventory challenges in second quarter, three in four retailers (76%) say it was difficult to fill available positions. Only 2% of retailers surveyed said they did not face hiring challenges.

Supply chain disruptions also extended to equipment: 79% of retailers say they experienced delays with store equipment/hardware deliveries this year and 41% say they postponed store equipment orders or new store construction/remodel projects because of supply chain delays.

Confidence among convenience retailers and suppliers that improvements are coming is low: Only 25% of retailers and 27% of suppliers are confident that supply disruptions will improve in the second half of the year.