Retail Boost Expected As John Lewis Charters Christmas Ships
John Lewis has announced that it intends to charter a fleet of ships in order to ensure that it has full access to its Christmas stock on schedule.
Other retailers have been searching for resolutions to their supply chain issues, and John Lewis, also owners of Waitrose, are intending to do so by chartering their own supply ships.
The retail industry has been plagued by supply issues thanks to a combination of the UK’s exit from the European Union and the continuing coronavirus crisis. In response, companies across the country have been seeking ways to avert company-wide catastrophe by accessing all of their standard supply.
Supply Chain Control
Such a move should see John Lewis take complete control over its own supply chain, allowing for a further level of micromanagement when importing its products from around the world.
Not only does this mean that John Lewis can have a much higher level of certainty when ordering goods, but this confidence is passed onto customers who know that their Christmas gifts have a better chance of being in stock when they’re needed.
In the past month, the stock exchange has seen retailers take a significant hit.
This is because investors may be predicting a collapse in products thanks to the aforementioned supply problems, and the anticipated collapse in profits would lead to an even further fall in the market price of many retailers.
However, this panic sale may have been somewhat hasty. Retailers still have months to resolve their supply issues and rebuild their main source of Christmas revenue to the condition they would typically expect.
For investors or short term day traders, this provides a unique opportunity. The market is deflated in terms of retail shares, somewhat artificially as people have been acting on what they think will happen in a hypothetical loss of supply at Christmas.
However, it may be worth investing in companies that have solutions and supply lines in place, such as John Lewis, as these are the most likely to see significant benefits to their bottom line throughout the Christmas period.
By keeping an eye on the companies that are investing in logistics, you can have your money in the right place at the right time.