RETAILERS CONTINUE TO FACE SUPPLY ISSUES

A shortage of shipping containers has put pressure on Dollarama’s finances, CEO and president Neil Rossy has acknowledged. And those supply chain issues are putting pressure on pricing.

Continued growth is being restricted by shortages on the shelves as international shipping remains backed up. This could have an impact on results for years to come. “The pressure on container shipping costs continues to build and, as a result, will be felt more in fiscal 2023 as we renew [shipping] contracts,” to our historical standards.”

Rossy told analysts on a conference call.

His concerns for the future include tight supply for retailers in general as the holiday season approaches. Several forecasts, including by MasterCard and Deloitte, expect U.S. retail sales to grow by at least seven percent during the holidays.

But shortages of everything from raw materials to products and staff could complicate things. COVID outbreaks in Vietnamese factories are forcing closures there, compounding the uncertainty.

He pointed to the success of Orgill’s online buying events and the expansion of its fulfillment network as positive signs of growth. Orgill’s next Online Buying Event will be held in late October and an in-person Spring Dealer Market is scheduled for Feb. 24 to 26, 2022, in Orlando, Fla.

BY GEOFF McLARNEY