Black Friday v. Covid-19 v. Supply Chain
Ally Leighton ‘25
Almost 2 years after the first COVID-19 case was identified, 2021 Thanksgiving was likely the first time families felt comfortable eating together at the dinner table. But, the report of a new variant, B. 1.1.529, commonly known as Omicron, from South African officials on Thursday reminded us to be thankful for all the progress we have made, but to remain very wary of the future. Since this variant could be vaccine-resistant, Biden quickly announced the travel ban on South Africa and seven other countries starting Monday. Further, because of the economic uncertainty associated with a potential vaccine-evading strain, stock markets around the world plummeted on Friday.
But this is only half of the story. Thanksgiving is also crucial for businesses because of the surge of shopping on Black Friday. The tug-of-war between two people over a pair of shoes is an American cliche; it speaks to the consumer’s motivation to get the best price possible at any cost. However, the announcement of the new variant, the possibility that workers are unvaccinated, as well as the 20% uptick in cases over the past two weeks, exacerbate the costs consumers must consider when shopping in person in crowded and chaotic stores on Black Friday.
Covid-19 risks did not deter too many, however, because according to a senior marketing manager at a mall in Northern Virginia, “We’re seeing a lot of pent-up demand for in-store shopping.” In general, holiday sales are expected to increase by 10.5 percent from last year when many shoppers felt the uncertainties were too great.
As demand increases, supply can’t keep up. The pandemic completely disrupted the supply chains, factories shut down, workers quit because of harsh working conditions and health concerns. It further worsened existing problems with outsourcing and an unstable labor force. Yet, earlier this month, the Biden Administration has mandated companies with more than 100 employees to be vaccinated or get tested weekly by January 4th. A few days later, the National Retail Federation (NRF) sued because of concerns of labor shortages in a season with such high demand. Due to the tight labor market, retailers are offering higher wages, referral bonuses, and better hours to entice the approximated 665,000 seasonal workers the retail sector plans to hire.
So, safety and profitability are not really a balancing act, it’s more so hand-in-hand. Yes, a mandate could likely deter many workers, leaving companies understaffed and further tangling the already disrupted supply chain. Thus, creating product shortages, huge delays, and ultimately a loss in revenue. However, Stuart Appelbaum, the president of the Retail, Wholesale and Department Store Union, introduces an important point: if consumers know the company does not require vaccines for its employees, they may shop at the competitor’s store that requires its employees to be vaccinated. Further, if employees are not vaccinated, COVID-19 is much more likely to spread, infecting customers as well as other employees which can create the same disruptions the companies dread will happen because of the mandate. The businesses that stand behind the NRF’s position also put themselves at risk of hurting their long-term image because of public condemnation from medical professionals and consumers.
While we wanted to resume the American tradition of Black Friday, maybe 2021 wasn’t our year. Cyber Monday could be a great way to deal with the frustration. Online retail therapy can’t hurt.
Sources:
https://www.nytimes.com/2021/11/25/business/retail-vaccine-mandates.html
https://www.washingtonpost.com/business/2021/11/26/black-friday-shopping-2021/
https://www.kff.org/coronavirus-covid-19/dashboard/kff-covid-19-vaccine-monitor-dashboard/
/26/omicron-covid-variant-us-to-restrict-travel-from-south-africa-7-other-nations.html
https://newrepublic.com/article/164523/black-friday-supply-chain-workers
