Business

Southern California Port Jam Questions Supply of Christmas Toys

Santa Claus is facing a suspense show where toys are delivered this holiday season. And the drama is out of Los Angeles.

Some of the most popular toys of the year (from LOL surprise dolls to Tonka trucks) are struggling to transport containers in a large port in Southern California and are delayed in loading into trucks, retailing in time for Christmas. I’m wondering if I’ll arrive at the store. The post has learned.

MGA Entertainment executives, who manufacture LOL dolls and accessories, call the shipping company daily to check the status of 700 containers that have been in ports in Long Beach, California and Los Angeles for over a month. I’m calling. Isaac Larian, CEO of MGA, said.

According to Larian, as a result of logistics snuffs, only 60% of major retail chains across the country currently have enough MGA toys in stock, whereas retailers usually have 98 at this time. %is.

“Our toys should be at Wal-Mart, Target, Coles, you name it,” Larian told Post. “Retailers call us every day because we don’t have enough of our products.”

California bottlenecks appear to be hitting primarily small and medium-sized toy makers, but partly due to a shortage of trucks and truck drivers during the pandemic, and a lack of loading and labor at the port this fall. Is spurred on. Combine it with the ever-increasing demand for toys that has been going on since spring, as many schools and workplaces remain closed and parents are desperately looking for ways to keep their children occupied.

“Getting the product here is a complete challenge. You can retail the product here,” said Richard Gottrieb, Head of Global Toy Experts.

Classic toys such as Lincoln Logs, Care Bears, Light Bright Sets, and Tonka Trucks are at risk of disappearing before Christmas, and Basic Fun makes these brands! Said Jay Foreman, Chief Executive Officer of. In the case of Lincoln Logs, he said supply could be depleted by mid-December.

Basic fan CEO Jay Foreman!
Basic fan CEO Jay Foreman!Rally Busacca / AP images for basic fun!

Basic Fun! Goods are facing delays of over a week as they are waiting for truck drivers to pick up at the port of Los Angeles. Some truck drivers are sent directly from retailers, while others are Basic Fun! Some are sent by. It will be shipped to your warehouse.

“We are planning a pickup that isn’t happening and this has been going on for at least four weeks,” Foreman said. “Now everything is very important.”

Earlier this week, Amazon’s site announced that MGA’s $ 13 LOL Confetti Under Wraps doll will be available on December 2nd. The site suggested that shoppers “order now”. Meanwhile, the LOL Clubhouse Playset, which sells for $ 49.88 on Walmart.com, is listed as “out of stock.”

A Wal-Mart spokeswoman couldn’t comment immediately, but sources close to retailers said, “It’s not uncommon for many gift item inventories to become fluid during the holiday season.” Amazon officials were contacted by The Post this week to confirm that LOL Surprise is a popular brand and said the e-tailing giant will work directly with MGA to maximize availability.

Part of the problem was that no one expected 2020 to be the year of the toy flag, or that retailers would offer deals in October, including Amazon Prime Day. According to The NPD Group, toy sales increased by more than 19% in the first three quarters of the year.

Most retailers order toys for Christmas in January and February and tweak them in the process. But “if demand is exploding like it used to be, production can’t grow fast enough,” Foreman said.

According to industry experts, it’s not clear if the largest publicly traded toy companies, Mattel and Hasbro, are facing inventory problems.

“It’s even more problematic for the little guys who don’t have Mattel or Hasbro muscles,” said Jerrick Johnson, an analyst at BMO Capital Markets.

Hasbro did not respond to requests for comment. A Mattel spokeswoman said the company’s earnings announcement on October 22nd, with management saying “the supply chain is fully functional” in “low retail inventory” and “amazing growth. We are working closely with our retail partners to address our needs. ” To consumer demand for the holiday season. “

With privately held MGA, which recorded $ 748 million in sales in 2019, according to Dun & Bradstreet, MGA’s Larian says the problem isn’t limited to ports and trucking.

His Los Angeles-based company owns and operates a factory in Hudson, Ohio, and primarily manufactures the brand Little Tikes. According to Larian, in November MGA generated $ 60 million worth of sales from retailers who canceled orders in July, August and September because the factory was unable to produce enough products in time for the vacation. lost.

The factory is just adopting

60% of the staff needed at this time of the year.

“This year isn’t the last year to wait,” toy expert Jim Silver told Post. “The slow replenishment system makes it more likely that you won’t get what you need.”

Southern California Port Jam Questions Supply of Christmas Toys

Source link Southern California Port Jam Questions Supply of Christmas Toys

Back to top button