Summary
Big retailers in the U.S. are changing how they get toys into stores by letting suppliers handle more of the import work. This shift is due to tariffs and trade challenges that affect how goods move from countries like China to the U.S. It helps retailers by giving them more time and flexibility to decide on orders.
Key Facts
- Retailers are moving from a "direct import" model to "domestic shipping," where suppliers handle more of the import process.
- This change is driven by tariffs and trade uncertainties, especially for items like toys.
- Retailers are making smaller, more frequent orders to stay flexible and avoid holding too much stock.
- Toy companies like Mattel and Hasbro have noted this shift, with Mattel handling more inventory as a result.
- President Trump has acknowledged the potential for a toy shortage due to these changes.
- Dollar General and Tractor Supply are using strategies to manage tariff impacts, seeing flexibility as an advantage.
- Retailers like Target, Walmart, and Costco are spreading their production across more countries to manage costs.
- This new approach may continue as long as tariffs are in place, according to industry experts.
