Toy giant Mattel has warned of Christmas price increases due to rising shipping and raw material costs as the global economy recovers from the pandemic.
Mattel chief executive Ynon Kreiz told the BBC the company “will consider” raising prices in the second half of the year, but said decisions have yet to be made on which products will be affected.
The move responds to “some of the inflationary pressures,” he added.
“We’re not the only ones who have done it, in our industry everyone has done it – and no one is surprised by [price increases]. “
Earlier this month, the founder and managing director of toy chain The Entertainer asked UK shoppers to start Christmas shopping now to avoid disappointment.
Gary Grant said a “shipping crisis” in China was causing uncertainty as to which products would be available and when.
Companies from DIY chains to electronics manufacturers have raised prices as the supply of many items, which has plummeted due to Covid-19, has failed to meet growing demand.
Bottlenecks in the supply chains that move goods around the world have also accumulated and shipping costs have multiplied.
Mattel’s warning came as it reported a 40 percent increase in sales and surprise earnings in its final quarter. Sales of Mattel’s most famous brand, Barbie, have surged over the past year, with people buying more toys to occupy children during shutdowns.
The company has also boosted sales with publicity around its drive to make iconic dolls more diverse.
Its latest figures were flattered compared to the same period last year when stores were closed in many countries.
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This notice was published: 2021-07-29 08:51:11