Gifts / Sports & Toys

During the epidemic, small retailers and manufacturers were squeezed by big brands. Now, as the holiday season approaches, the situation is even worse, with delays, shortages and other supply chain disruptions having serious effects. Many times, they lose out to giants such as Wal-Mart and Amazon, which spend millions of dollars to rent ships and planes to transport goods. Independent shopkeepers who do not have this channel say they are often ranked last because manufacturers prioritize larger, more lucrative contracts. Sean Maharaj, managing director of the consulting company Aarete and a former supply chain analyst at Mattel, said: "The toy industry has always been Wal-Mart and Target first. As a toy manufacturer, once you miss the opportunity to cooperate with large stores Or they will be blacklisted if they are out of stock. This is enough to make the business plummet."

u3000u3000 In the past two years, the number of small retailers has continued to decrease. In the early days of the new crown pneumonia epidemic, many stores were forced to close, and more customers flowed to national chain stores. Wal-Mart, Target, Costco, and Amazon all reported record sales and profits, and Americans fell in love with curbside pickup and free shipping. According to data from the Federal Reserve, about 800,000 small businesses were permanently closed in the first year of the epidemic, which is about 30% more than usual.

u3000u3000 For Mitchell, who opened a toy store in Boston, the difficulty is twofold. She tends to buy from smaller manufacturers, and these manufacturers have to compete with large companies in terms of raw materials and shipping containers. After the toys are shipped to the United States, her shop is often ranked behind. Mitchell said that it is almost impossible for a small store like her to get top brand products. The large toy manufacturer has a minimum purchase amount of US$20,000 per year, which is higher than the inventory she needs, so she can only purchase small quantities from distributors. But Mitchell has not been able to guarantee the availability recently, "If children have a soft spot for a certain toy, I may not be able to supply it."

u3000u3000 Smaller manufacturers say that it is more difficult for them to obtain items such as cotton, paper and LED lights than large companies. They also said that just as they were preparing for the holiday shopping season, the factory was understaffed, and the months-long shutdown caused by the epidemic caused a backlog and cancellation of some orders. Kimberly Smith, chief supply chain officer of Everlane, a San Francisco-based apparel company, said: "This is a battle for capacity. Big companies provide rewards and donations, saying,'I will give you an extra $5 per item and put my order first. "." Even if the product is ready to be shipped, it will sometimes be "cut off" by people halfway, because some retailers are willing to pay more.

u3000u3000 Michigan State University's professor of supply chain and logistics, Jason Miller, said that small importers have to compete for "spot prices" compared with large chains like Wal-Mart that can guarantee low shipping prices through long-term contracts. Many smaller manufacturers and retailers have absorbed rising costs, but hope that the surge in prices will be temporary. "There is no doubt that small retailers without much bargaining power are most affected in all aspects. They have to pay the highest price and wait the longest." Miller said.

u3000u3000 A small Texas company that makes Easter eggs and Christmas decorations is racing against time to rush orders. Due to insufficient inventory, they will first satisfy big merchants such as Wal-Mart and Target. The company’s founder, Curtis McGill, said: “Once you start supplying to large companies, you must guarantee the price a few months in advance. If you don’t deliver the goods by a certain date, the order will be cancelled.”