Brexit, COVID-19 and logistics problems, a British toymaker’s nightmare before Christmas

Gary Grant, founder of The Entertainer, does not hide his concern surrounded by toys for Christmas in his warehouse in Amersham, on the outskirts of London, as the holidays approach and the pressure increases due to logistical problems.

“We have difficulties getting truckers to take our containers out of the ports,” he explains while giving instructions from one of his foremen. “But also to find warehouse workers”, whose need triples with the festive season, says the president of this company that in 2018 bought the Spanish group of toy stores Poly.

Ten weeks before Christmas, the British toy retail industry is rocked by post-Brexit labor shortages, rising raw material prices and transport costs.

Around Grant, about fifty employees dressed in yellow jackets are busy in a constant bustle, some scanning bar codes on mountains of boxes, others arranging them on huge shelves with the help of forklifts.

The Entertainer, which claims a 10% share of the UK toy market, makes half of its turnover between the beginning of October and Christmas.

The company usually hires temporary staff during this period to receive, handle and ship Legos, Barbies and other toys to the group’s nearly 150 stores and to individuals who shop online. But this 2021 is a real nightmare.

“Many of the temporary workers who came from Eastern Europe” do not do so this year due to Brexit, says the employer.

Grant is also very aware of the shortage of truckers across the UK, as he has to transport thousands of items each day from ports to his two warehouses and then to various outlets.

According to industry officials, there are about 100,000 truckers missing in the UK and for several weeks this has caused serious delivery problems, leaving store shelves half empty and gas station dispensers dry.

In addition, the port of Felixstowe, the main one in the United Kingdom, has suffered for days a congestion that forces container ships full of products for Christmas to divert to the European continent.

10% to 15% more expensive

Brexit has also involved administrative procedures and additional costs for The Entertainer, whose negotiations between the parent company and its Spanish subsidiary were considerably complicated.

“Now we have to pay customs duties that we didn’t have before,” Grant laments, “leaving Europe has also had a significant impact on our efficiency.”

But the problems related to Brexit are by no means the only thorn in the executive’s face, at the end of a global supply chain hit by the effects of the pandemic.

The price of container shipping from Asia “is ten times higher” than a year ago, and the cost of “plastic, wood and cardboard has literally skyrocketed in the last three months,” he says, as have electronic components. essential for certain toys.

Santa Claus will notice the difference in his bill: referring to the “inflationary pressure” that has spread beyond his sector, Grant expects the price of toys from Asia to increase between 10% and 15% in the next twelve months .

But “there will be enough toys in the UK” for Christmas, he promises, “the shops will not be empty.”

However, the issue is so worrisome that politicians are sending reassuring messages: British Finance Minister Rishi Sunak assured on Wednesday that there will be enough toys this year under the Christmas tree, as does his American counterpart, Janet Yellen.

Grant is also confident, despite common restocking problems for certain products whose success is hard to predict.

The BBC recently echoed a shortage of Harry Potter wands, which could leave many parents without sleep.