There may be a shortage of toys this Christmas, so buy now, industry warns | Retail sector

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It may be August, but the country’s toy stores have already issued an alarming call to parents desperately trying to enjoy their summer vacation. If you know what your child wants for Christmas—and want to avoid the most scramble for gifts in years—buy it now and stash it in a closet.

Game industry veteran figures told The Observer that consumers will face higher prices and greater scarcity on the shelves this Christmas as a result of a “perfect storm” of economic pressure that has derailed their plans. Despite their best efforts, they cautioned that it was already too late to resolve the bottlenecks in time for this year.

Gary Grant, founder of toy store chain The Entertainer, said, “I don’t want to be alarmed, but I can say there will be more hunts for things at Christmas than there have been for a good number of years. Parents know what their kids want to buy or what their kids are actually asking for, if you see it, buy it. Buy it and hide it to avoid disappointment.”

Some large chains are already trying to stockpile inventory to avoid supply problems, but there is a limit to the warehouse space they have available. “Our warehouses are bloated,” Grant said. “But half of the entire year turnover in the toy business is in the last quarter. We don’t have warehouses big enough to accommodate our full inventory demand.” While a series of pressures have combined to cause a potential Christmas crisis, the unusually high costs and limited availability of shipping containers needed to bring in inventory from manufacturing bases in Asia are the main issues.

Industry figures said container insurance costs have risen 10 to 15 times over the past year. Grant said shipping a 40-foot container from China historically cost around $1,500 (£1,000), but today it costs ten times that.

While price hikes have caused some toy importers to delay their orders, even those willing to pay are often unable to secure a container.

JJ Musical Bedtime Doll from the popular Cocomel brand. Image: public relations

“Some people paid upwards of $30,000 just to get a container on board,” said Alan Simpson, president of the Toy Retailers Association. “But even if you agree to pay, it does not mean that you will get a container to actually put your goods on the ship. It is a double whammy. Not only will there be a price hike, but there will be a shortage because there are not enough containers there.”

Grant emphasized: “We as a company probably have 200 containers out of stock made in China, but we can’t get the containers to move them. I only move half as many containers per week at this time of year than I expected to move. In the UK, that would mean that it would be There is more in stock at Christmas this year than we’ve had for many years. Toys are one of the goods that will be affected by that.”

As a result of the pandemic, shipping containers have piled up in the wrong places, either waiting to be unloaded or sitting empty. Production of the same containers also fell last year.

In addition to shipping difficulties, toy retailers face a shortage of truck drivers when goods arrive in the UK. Rising demand during lockdowns, Typhoon in China in July, and the re-imposition of Covid restrictions at some Chinese manufacturing bases have exacerbated the problems. It’s just a perfect storm,” Simpson said. “Everything that can go wrong has gone against us this year.”

While many importers and retailers face these issues, the seasonal nature of the toy business means that supply issues cannot be resolved by the time children have their hearts set on the Christmas gift of their choice.

“In a typical year, a toy company would be able to start seeing how sales were going,” said Natasha Crooks of the British Toy and Hobby Association. “They might be able to scale up manufacturing and do really fast shipping to refill places where things are sold. It’s going to be almost impossible for people to do this year.

“There will be stocks, but it’s not one of those years where you can leave it until the last minute and think it will still be there. Get it when you see it.”

The official 2-sided octopus plush toy goes from happy to sad. Photo: octopus plush

Retailers said it’s too soon to know which toys are most in demand this Christmas, but they said demand for Paw Patrol numbers, Popper stress relievers and the Cocomelon brand for preschoolers were all high.

Unwelcome as it may sound, making a Christmas shopping list while at the beach this summer may be the answer.

“There wouldn’t be a toy store without toys at Christmas, but that’s not the point,” Grant said. “Kids don’t want any game. They want the game they want. Therefore, it will be even more difficult this Christmas to ensure that all games are fully available.

“The issues we are facing are not just a passing picture. We cannot solve them fast enough this Christmas. These transportation problems have to end with another year.”

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