NBC News: Bargain Hunters Will Be Unhappy This Holiday Season, As Retailers Hold Back On Discounts

Amid a supply chain crunch and shipping snarls that have kept retailers scrambling to keep shelves stocked, shoppers panicking about not finding enough gifts will face another shortage this season — deals.

Across the board, retailers including Best Buy, Kohl’s and Macy’s have limited the number of discounts at their stores as billions of dollars of merchandise sits on container ships at American ports.

Rising prices, increased disposable income driven by stimulus money and record retail bankruptcies have also led retailers to roll out fewer promotions, according to company earnings calls and retail analysts.

“Our goal is not to accelerate in promotional activity, but we’ll also see where the landscape goes and make sure that we’re continuing to gain share,” Ulta Beauty CEO Dave Kimbell told investors last month. “But we won’t be leading promotional activity.”

This year’s promotional levels have been at historic lows, Macy’s Chief Financial Officer Adrian Mitchell told investors in September. The company is focused on items with higher average price points, he said, adding that Macy's has "been more thoughtful about the categories that need promotion."

According to recent forecasts from the National Retail Federation, holiday spending is expected to “shatter previous records,” with sales growing between $843.4 billion and $859 billion, an 8.5 percent to 10.5 percent growth rate from 2020. While much of this growth may be attributed to retail’s emerging pricing power, it is shaping up to be a heavier hit on shoppers' wallets as they head in to the holiday season.

Read the full article from NBC News here.