Tariffs, Supply Chain Challenges Could Have Big Holiday Shopping Impacts
Cassandra Forcier has been preparing for the holiday shopping season at Building Blocks Toy store for nearly two decades, stocking up on the “it” toy and ensuring there is plenty of paper for complimentary gift wrap in stock.
“I had to be ordering, you know, Christmas and Hanukkah paper in June and try and hope that we would have enough,” said Forcier. “Normally we’re trying to order it in about September.”
One thing out of her control this year, tariffs and their impact on toy prices and the supply chain.
“It’s extremely stressful and concerning,” she said.
Experts say toys from China and those with electronic components will see the biggest price increase.
“80% of toys are imported from China,” said Professor Steven Durlauf, the Frank P Hickson Distinguished Service Professor at the University of Chicago. “The best guess is prices will be something on the order of one to one and a half percent higher overall on the economy as a consequence of the tariff policies.”
President Donald Trump cut tariffs on China by ten percent in October, which isn’t expected to bring down toy prices this year, according to Toy Insider.
“Because this product was already manufactured and produced, they pay the tariff on the landed imported price, so that’s when it comes into the ports,” said James Zahn, the Senior Editor at Toy Insider. “So, hopefully what we’ve seen happen recently will cause some relief for next year.”
To avoid frustration, Forcier suggests consumers shop early to ensure they get hte products they really want.
“Be flexible, trying to figure out which items that you might be able to switch to something similar, and expect to spend a little bit more,” she said.
Despite tariffs, toy sales are up. For the first nine months of this year, the U.S. toy industry is up seven percent, according to Zahn.
The National Retail Federation expects holiday sales to surpass one trillion dollars for the first time this year.
#Newssource #pinterest #GenZGrowth  #DigitalGrowth #InvestorUpdateÂ
#printpublication #printmagazine #modernbusinessinternational
