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 helped to delay 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 customer needs — could make for a less festive mood.

Shoppers are expected to pay on average of 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. TVs will see the highest price hike on average, up 17% from a year ago, according to the research firm. That’s because whatever discounts available will be applied to goods that are already expensive.

“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.”

For years, Black Friday has been losing importance. Since 2011, stores jumpstarted the holiday shopping season by opening their doors on Thanksgiving to compete with Amazon and other...