Millennial Money: Be ready to work for Labor Day bargains

This Labor Day, some Americans will have extra cash on hand for holiday weekend shopping.

Some people padded their savings accounts by staying home during the pandemic. And some set aside the advance payments of the child tax credit they received, points out Amna Kirmani, marketing professor at the University of Maryland’s Robert H. Smith School of Business.

But consumers who are ready to spend will face the retail impacts of the continuing pandemic, supply chain interruptions and inflation.

Labor Day savings may not be as easy to spot this year, either online or in person. In fact, for some product categories, there might not be discounts at all.

Here’s what you need to know about the sales — and why you may have to work a little harder to find what you’re looking for on Sept. 6.

RETAIL FACES TOUGH SLOG

Ramping up production after last year’s COVID-19 shutdowns has led to ripple effects in the retail world.

“We have consumers who are believed to have quite a bit of money in their pockets, but the retailers do not have a lot of product,” says Tom Arnold , professor of finance at the University of Richmond’s Robins School of Business in Virginia.

“The supply chain issues are very real in that the retailers are having a difficult time getting product, and when they do get product, they are facing a higher cost for the product.”

That means some retailers are struggling just to fill their shelves. And if these stores don’t have much inventory to sell in the first place, they won’t be as motivated to discount the items they do have in stock.

Here’s how a retailer might be thinking about inventory: “In past years, I could have 100 units, thinking I could sell 50 at regular price, the next 30 at 25% off and then clear out...