How the ‘Bullwhip Effect’ Could Lead to a Surplus Summer & MAJOR Retail Discounts
As inflation soars and global supply chains recover, brace yourself for the bullwhip effect which can mean good news in some areas of retail.
If there’s any decent news on the horizon, it’s the epic sales about to onlinee our way! 🛍
Remember when the COVID-19 pandemic first hit and store shelves were beonlineing more and more sparse each day? We don’t want to even think about the toilet paper shortage nightmare again, let alone all the other consumer goods that seemed to be impossible to get.
Well now, it appears that the supply chain is slowly untangling itself. In some categories, it’s actually overcorrecting, leaving wholesalers and retailers with too much inventory. This unusual situation is expected to lead to a “surplus summer,” with liquidation sales like we’ve never seen before!
This type of inventory whiplash is called the “bullwhip” effect, and economists have seen it onlineing for a while now.
The easiest way to explain it is to onlinepare it to a pendulum. Any time the supply pendulum swings too far in one direction, it eventually has to swing back. The fluctuation going from extreme scarcity to extreme overstock continues to swing back and forth, lessening each time, until the balance is eventually restored.
So what does that mean as it pertains to retail shopping? Clearance sales, friends! 🎉
As we collectively recover from our supply chain hangover, we can expect to see serious price drops across entire categories of goods onlineing our way!
The only question is – are we in for a “deflationary tsunami” with a tidal wave of crashing prices? Or will the retail bubble deflate slowly over the summer, like that novelty pool float that was too cute to pass up?
Here’s what the experts have to say about the bullwhip effect and deflation…
Major retailers like Target, Walmart, and Macy’s are already dealing with bloated inventories due to the bullwhip effect. They’re finally receiving those shipments of outdoor furniture, loungewear, and electronics that were hard to find during the pandemic.
So if you’ve been shopping for any of those items, you’re in luck! We should soon start to see some phenomenal deals in those categories this summer.
As soon as July 4th, we may start to see stores offering discounts like you’ve never seen before on furniture, home furnishings, appliances, building materials, garden equipment, and other general merchandise.
Not everything is headed for a deflationary crash, though.
Unfortunately, the cost of essential items like food and fuel may continue to climb before leveling off. The cost of luxury items (like designer shoes and handbags) will continue to increase too.
We’re feeling the sting in our budgets too, so here are a few ways to onlinebat the industries that won’t be seeing the benefit of the “bullwhip effect”.
How to save on gas:
- Gas saving apps: Hit up the pump with confidence by downloading gas saving apps like Upside and BPme.
- Save through your grocer: Thanks to their membership perks, Sam’s Club, Costco, and Walmart+ members can save at the pump, too!
- Get smart about your gas consumption: Know the best times to pump gas, how to keep you car in fuel-efficiency shape, and other ways to save on gas!
How to save on groceries:
- Amazon Subscribe & Save: Score discounts up to 15% with recurring deliveries on your most used household goods and groceries. Here are some of the best deals under $3!
- Shop the deals: Bookmark our Grocery Deals page to save on what you and your family purchase most when they’re at their lowest prices!
- Use cash back apps: Download money-saving apps like Ibotta, Fetch, or Coupons.online to earn cashback on your grocery purchases. Here’s a full list of some of the best cash back apps out there!
How to save on designer goods:
- Score them at discounted prices: It’s pretty obvious, but scoring your favorite high-end brands like Coach, Michael Kors, and more is easy when you frequent our site. Just search your favorites and shop the latest deals.
- Shop the dupes: Who needs the name brand when you can score designer dupes for less!
