Supply chain crisis leaves Hamilton-area toy stores in limbo ahead of holiday shopping season

'Tis the season to shop early and be prepared for compromises.

That's what owners of independent, Hamilton-area toy stores are telling customers ahead of another holiday season once again marked by the ongoing supply chain issues.

If you have an item in mind and it just has to be that one, buy it now," said Lisa Evans, owner of the Chickadee Kids Company in Burlington. You just don't know if it's going to be on the shelf and chances are the retailers are not going to be able to restock it."

Much like any other sector, the toy industry is feeling the pinch of the pandemic-spurred supply chain crisis, said Kai Huang, associate professor of operations management at the DeGroote School of Business at McMaster University.

Shipping has slowed and production is playing catch up to demand, with no corner of the often invisible path between manufacturers and consumers untouched by COVID-related woes.

Like the pandemic, it's global," said Huang. It's affecting every country and every aspect of the supply chain."

But the issues cropping up for this holiday season aren't new, said Evans. Inventory shortages started rearing their ugly head as early as last January, but intensified throughout the summer months.

Product that was ordered back in July has still not arrived on Evans' shelves, and likely won't until December. Some of her suppliers either can't get shipping containers or their ships are sitting in port waiting to be unloaded.

Other items are just not available at all, she noted, while the stock that she has been getting in can be described as dribs and drabs."

These shortages are just unheard of," said Evans. It's never been like this before. It's not just one supplier or one area of the world. It's across the board."

The crunch of the supply chain has also been felt by large Canadian retailers, such as Mastermind Toys, which has two locations in Hamilton as well as another in Burlington.

In a statement to The Spectator, a spokesperson said the company placed their holiday orders six to eight weeks earlier than usual knowing there would be delays coming." They also worked with their longtime vendors to find expedited shipping options" to ensure their shelves would be full.

But when it comes to locally-owned stores, ordering ahead of time and in large quantities presents a different set of challenges, said Rebecca Bamford, owner of Citizen Kid on Locke Street South.

Every dollar spent has to have a plan behind it - or money that could be spent in other places and on other products could be left sitting on a shelf for months at a time, said Bamford. But space for that inventory is also a hot commodity.

I don't have endless amounts of storage and capital to be able to hold onto things for that long," said Bamford.

Evans said at their store, their margins have tightened further during the pandemic, as restrictions left their doors closed for the better part of the last two years. Even if they had wanted to order more to prepare, the money isn't necessarily there, she said.

We don't have the bank account to buy those large quantities of stock while still paying our rent and paying our staff," she said.

Bamford said the supply chain shortage is especially disappointing after last year's holiday season, which saw families stay home and not get together as they normally would. This year should look more normal, with a majority of the population vaccinated and people gearing up to get together.

We expect the purchases and gift giving to be even bigger," said Bamford. But then to not have the merchandise, it's a cruel paradox."

To make sure everyone gets what's on their list, both Evans and Bamford said they have had to explore new brands to fill the gaps. While some have been surprising," according to Evans, there is still risk they may not resonate with customers who have their hearts set on a certain gift.

You just don't know if they're going to see it as an equal comparison to something they otherwise want to buy," said Bamford.

Both store owners said they have now taken to encouraging customers to buy early if they can and be flexible" with their expectations, especially if they do decide to shop local.

Keep an open mind," said Evans. You might just find a hidden gem toy that you probably wouldn't have found before."

And while the issues with the supply chain aren't expected to clear up any time soon, Huang said shoppers and retailers alike should see things improve next year.

I don't expect they'll be solved immediately," he added. But we will be in a much better place."

Fallon Hewitt is a Hamilton-based reporter at The Spectator. Reach her via email: fhewitt@thespec.com