Retail supply chain delays due to COVID-19 could cause issues come Christmas

Although it's four months away, it may be time to start thinking about doing your Christmas shopping.

The retail supply chain has been significantly impacted by the pandemic, due to ports being closed, fewer freight flights, and delays caused by extended lockdowns.

Last week one of China's busiest ports was forced to shut down, which will undoubtedly have flow-on effects.

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"There is no doubt the global pandemic has had a massive disruption on supply," CEO of the Australian Retailers Association Paul Zahra told 9News.

"The capping of incoming flights has meant that a lot of products coming into the country have had to be shipped in which is causing all sorts of delays."

Woolworths boss Brad Banducci is also concerned about shortages come Christmas time.

"All of us need to make sure we get our products for Christmas into Australia as soon as possible," he said.

It is a worrying sign in the lead up to Christmas, but for retail giant Wesfarmers, profits have so far been strong.

Its stores Bunnings, Kmart and Officeworks recorded bumper sales to June 30 despite navigating lockdowns around the country.

Wesfarmers' full-year results show profits are up by 16 per cent and online sales increased by 57 percent to 2.4 billion dollars.

But the overall impact of COVID-19 on the NSW retail sector hard, and saw a 8.9 per cent drop in sales during July.

"We are concerned about those small businesses being able to come out of the lockdowns and be able to operate," Mr Zahra said.