Every year, there are certain days that retailers and online stores attract more visits and, ideally, some new customers. Blue Monday is one such day that has gained some notoriety in recent years across Europe, including the UK. According to urban legend, Blue Monday is the saddest day of the year, occurring in January. There is no actual science or historical significance behind this assertion, but it has become one of those days that retailers cannot afford to ignore anymore.

Blue Monday helps retailers and consumers alike shake the post-holiday blues

Despite its debatable origins, the marketing strategy of Blue Monday lies in the phenomenon of Retail Therapy. “Retail therapy” is one way of stress reduction that many people utilize consciously or otherwise. It’s an act of purchasing oneself a small item to lift the mood when feeling low, and it’s more prevalent than anyone would believe. While the figures for this year are yet to be released, Blue Monday has already shown vital signs in the prior years. The number of online searches supports this, which on Blue Monday increased by 26% in 2017 and 32% in 2018.

Blue Monday helps retailers gain some traction during the precipitous slowdown that comes with the end of the holiday season. Retailers get to sustain sales and utilize the resources between Christmas and Valentine’s Day with Blue Monday.

Blue Monday in 2022 could be a sad day for retailers

Blue Monday has added a charm in what was otherwise a lull period after holidays for the retailers. But the situation in 2022 has been different from the years before it. The epidemic has impacted retail sales in a variety of ways. For one, the Omicron version dashed hopes of the retail industry returning to normalcy this holiday season. This is in addition to the retailers already being challenged with stiff e-commerce competition, supply chain issues, and workforce shortages. 

e-Commerce has an advantage this year

Over an extended period, internet sales have taken share away from retailers. Consumers have increasingly used the internet for Christmas and holiday season purchases in the past, and it prevailed to a large extent again this year. The situation is not different for Blue Monday either. There are a lot of great deals and promotions offered online that continue to attract customers, but the same can’t be said about the retailers. The costs of doing business have gone up significantly due to changing customer restrictions, labor shortages, and increases in global logistics prices.

The Snarled Supply Chain

This year the retailers will face more significant challenges. With port congestion and freight bottlenecks commonplace, keeping retail shelves filled immediately after the ’21 holiday season is difficult. 

Additionally, shippers can expect carriers to increase the spot rates and shipping charges, due largely to the current issues plaguing the global supply chain and the inflation caused by a limited capacity being far outstriped by demand throughout ‘21. With capacity still being limited, industry analysts believe that carriers will have the upper hand when it comes to bargaining new contracts with shippers at a higher price point. While it is expected the market will eventually level out and shipping prices will return to past norms, it’s not expected to happen before 2023.

An ongoing bottleneck 

Unfortunately, shippers will have to contend with more than just higher freight rates. Both the Los Angeles and Long Beach ports, two of the busiest ports in the United States, have authorized the practice of charging shippers for containers that have remained at the port for nine days or more, beginning January 30th. The new proposed tax will cost shippers $100, with an additional $100 being tacked on everyday until the container has been cleared from the port. 

Last-mile upcharges

It doesn’t end there, however, even last mile delivery charges will be increasing, which is almost adding insult to injury at this point. FedEx and United Parcel Service said their prices would rise at an average of up to 6% across most services in 2022. This is the first time either business had annual hikes over 4.9% in about eight years.

The global supply chain challenges are increasing continuously and pushing up the cost of doing business. To be successful, you’ll need a reliable logistics partner that can provide insights into your supply chains and help reduce costs. For all your supply chain needs, you can try best-in-class logistics and supply chain optimization services from Gillson. Gillson is a far-reaching inventory network stage that attempts to assemble coordinated effort, permeability, execution, mix, and information-driven efficiencies into all tasks within the Supply Chain. It’s here to assist with wiping out pointless manual cycles and assets to reduce operating costs, increase efficiency, and, as a result, profitability.