New York (AFP)
“Customers are always told that it's best to do Christmas shopping in advance,” notes Judy Ishayik, co-owner of a New York toy store.
This year, with the supply problems, if they want a specific item, "we recommend that they do their shopping as early as September".
Especially since the prices will go up.
Her store, Mary Arnold Toys, has been selling toys for 90 years on the Upper East Side, an upscale neighborhood of Manhattan.
Apparently, it is well stocked.
But at the back of the store and in the basement where stocks are stored, some shelves are empty.
Like many other sectors of the economy, the toy giants are struggling to source and route their deliveries.
The reasons are multiple: factories are closing sporadically due to peaks of Covid-19 contamination, shipping carriers are overwhelmed by demand with online commerce, there is a shortage of containers, in some ports, boats are waiting for several days to unload their goods, in the United States, road carriers are struggling to recruit drivers.
Toy specialists have been maneuvering as best they can since the start of the pandemic, faced in early 2020 with the closure of manufacturing plants in Asia, then stores all over the world.
A mini-wind of panic had started to blow ahead of the holiday season last year, with some fearing that overwhelmed carriers like UPS or Fedex could not deliver packages to customers on time.
An employee at Mary Arnold Toys, a toy store in New York, August 2, 2021 Kena Betancur AFP
The great majority of the gifts arrived on time.
Finally, supported by purchases of dolls, board games and construction for children trapped at home, sales of the sector increased by 16% in 2020 in the United States, according to the NPD firm.
- Battle for the boats -
But with a supply chain disrupted for over a year now, delays have piled up, notes Jennifer Blackhurst, a supply chain specialist at the University of Iowa.
Almost empty shelves at Mary Arnold Toys, toy store in New York, August 2, 2021 Kena Betancur AFP
"It does not affect just one sector or one product. All companies are fighting for a little space on the boats" and the situation should not, according to her, normalize before 2022.
Hasbro, the parent company of Transformers and Monopoly figures, is well aware of this.
"We are working to ensure product availability during the holidays," recently assured the group's financial director, Deborah Thomas.
Hasbro placed the orders earlier, diversified its sources of supply, ports and carriers used.
These measures come at a cost, however: sea freight rates have quadrupled compared to the start of the year, said Ms. Thomas.
The group will therefore increase its prices in the third quarter.
For his part, the CEO of Mattel, maker of the famous Barbie, ensures that his group can meet demand.
"There could still be unforeseen challenges in the supply chain and it is difficult to say what the future holds", acknowledges Ynon Kreiz, however.
- Limited stocks of Lego -
While multinationals can rely on their extensive network, small businesses cannot.
The industry's trade federation, Toy Association, created a structure at the end of July to help companies overcome the shipping crisis, which it says will last until the end of 2021, or even 2022.
Almost empty shelves at Mary Arnold Toys, toy store in New York, August 2, 2021 Kena Betancur AFP
"85% of toys sold in the United States are manufactured abroad," said the organization in a recent letter to parliamentarians.
However, because of the shortage of containers and the little space available on the boats, "many members see their products stuck abroad".
And for those who manage to find solutions, prices explode and delays multiply.
"We are currently ordering the maximum (...) because the companies cannot guarantee the availability of the merchandise in October or November", notes Ezra Ishayik, purchasing manager for Mary Arnold Toys.
He placed an order with Lego for $ 60,000 but only the equivalent of $ 20,000 worth of goods will be sent due to lack of stocks.
There will be toys under the tree, says Jennifer Blackhurst.
But it is difficult to predict where the bottlenecks will be.
Because of a shortage of wood, "it currently takes months for some furniture," she emphasizes.
And the lack of semiconductors could end up affecting the manufacturers of electronic products and gadgets more severely.
© 2021 AFP