DHL surveyed managers and executives at U.S. businesses to determine their expectations for this holiday season as well as early 2023, especially in light of lasting pandemic-related challenges, labor shortages, and record-high inflation.
With more than 2,000 responses, the survey found that 46% of managers are most concerned about supply chain delays this holiday, while 35% list inflation as their main concern—more than double the number who said so last year, according to DHL. To offset rising costs, 60% of respondents said their biggest priority this year is raising the prices of their products or services. What’s more, 78% said they have already increased their product pricing due to inflation—and by quite a bit: 17% have increased their pricing by more than 20%; 22% have increased their pricing by 11%-20%; and 39% said they have increased their pricing by 1%-10%.
Most businesses are expecting big changes one way or the other this holiday: roughly half of respondents said they expect either a considerable increase or a considerable decrease in business this peak season compared to 2021. And they also said they’d go to great lengths to ensure a successful peak: 44% said they would volunteer as Santa at the mall if it meant their business would exceed their holiday sales goals; 21% said they would live in the Grinch’s cave; another 21% said they would spend Christmas week in the airport; and 14% said they would dress as an elf for a year—again, if it meant their company would have a successful holiday season.
Looking ahead to the New Year, respondents said there are some bright spots on the horizon. Nearly half (45%) said their businesses will benefit from global expansion in 2023, and 30% said they expect the Inflation Reduction Act, passed this year, to be most beneficial to their businesses in the year ahead.
