President Biden Reassures Retailers on Supply Chain Improvements

Supply chain issues won't dampen the holiday shopping season or the holiday spirit, according to The White House. President Joe Biden, Director of the National Economic Council Brian Deese and Cedric Richmond, director of office of public engagement, hosted a roundtable earlier this week with a diverse group of US companies to discuss their outlook for the holiday shopping season, and the steps companies large and small have taken to meet consumer demands. The meeting also highlighted steps companies have taken to overcome supply chain bottlenecks and the progress they are seeing at the Ports of LA and Long Beach.

The CEOs thanked Biden for his focus on supply chain bottlenecks and the productive partnership he established with the private sector to tackle these disruptions. The business leaders noted the strength of their supply chains, especially for seasonal items, and highlighted ways they had planned ahead, diversified their supplier base, sourced new products, and partnered closely with suppliers to be ready to meet the seasonal demand. The result of this planning is evident in their high inventory levels and high on time delivery rates.

“We’re seeing progress with port congestion and staffing levels as a result of the administration’s recent actions, and the outlook for maintaining stocked shelves improves each day,” said CVS President and CEO Karen Lynch. “The focus on increased availability of over-the-counter COVID-19 tests has also had a meaningful impact and provides countless families with protection and peace of mind during the holiday season. With regard to our pharmacies, we’ve been able to utilize our expertise and extensive partnerships throughout the supply chain to ensure the continued availability of prescription medications since the onset of the pandemic.”

Other CEOs taking part in the Roundtable included: Corie Barry, CEO, Best Buy; KS Choi, CEO, Samsung; Carlos Castro, CEO, Todos Supermarket; Meg Ham, president, Food Lion; Ynon Kreiz, CEO, Mattel; Doug McMillon, president and CEO, Walmart; Rodney McMullen, CEO, Kroger; David Rawlinson, president and CEO, Qurate Retail Group; Josh Silverman, CEO, Etsy

Participants noted that the backlog at the ports of Los Angeles and Long Beach has decreased, and Walmart CEO Doug McMillon highlighted a 51% improvement in his company’s throughput at the ports due to the work of the Biden-Harris Port Envoy.

In addition to discussing the holiday shopping season, the President also noted the progress made at the Ports of Los Angeles and Long Beach, which have seen an over 40% drop in the number of long dwelling containers, an important sign that velocity and fluidity are coming back.

Black Friday sales were up 30% compared to last year and we are in the midst of a retail boom with retail sales up double digits every month in 2021 compared to the previous year. In October retail sales were up 15% compared to last year.