Due to hold-ups at gridlocked container ports, that include Zebrugge, Felixstowe and Southampton, not only do children face losing out on the gifts and toys they want to receive this Christmas, but suppliers and retailers too, are counting the cost of lost festive sales.
Thomas O’Brien, managing director of Boxer Gifts, based in Leeds, was interviewed by both the BBC and ITV Lunchtime News last week (December 17), as well as the Yorkshire Evening Post.
Speaking to Best of Today’s ‘Thursday’s Business With Dominic O’Connell’ on BBC Sounds, he said that containers of product from the Far East, ordered in September, that should have normally taken 40 days, would not be arriving until December 28 which would be too late for Christmas. “The problem we have with stock shortages is that they miss a crucial week for sales, which will result in missed profits. Those sales are lost, and no goods mean no pay,” with Thomas estimating that the company could lose a £1m in sales.
Asked if it would make the company more cautious next Christmas, he reflected, “we have got to be sharper and buy earlier.”
With a couple of containers currently stuck in the port of Zeebrugge, Thomas told BBC News: “Some of the ships are bypassing the UK and tipping off at European ports, but others are just slowing down because they’ve got nowhere to unload. Various games and stocking-filler toys, such as our Grow-a-Sloth, are hugely popular, but we’ve had stock outages for months because shipments are delayed and that’s costing us sales. More importantly, it’s reducing availability for consumers to find fun gifts as there are less about.”
Thomas was also interviewed by Nina Hossain, lead presenter on ITV Lunchtime News, where he highlighted that another point of contention was a sharp rise in shipping costs driven by the pandemic, which had shunted a lot of freight together from earlier in the year. “The congestion has led congestion at the European ports and a lot of vessels that don’t want to call on the UK, resulting in massive price rises from the Far East,” he explained.
Asked if the current lobbying by the British Retail Consortium (BRC) could help, Thomas said, ”it’s too late to be honest.” The BTHA, which represents the toy industry, also called on the government to help to save the festive season.
(pic 1) Top: Thomas O’Brien, managing director of Boxer Gifts, was interviewed on ITV Lunchtime News.
