Shortage of toys may hit Woolies

Oct 13 2007 by Iain Laing, The Journal

HIGH street retailer Woolworths has warned that it may face a shortage of popular children’s toys in the days leading up to Christmas.

The news follows delays to toy shipments headed for the UK from China as stringent checks were imposed after shock recalls from Mattel in the summer.

More than 21 million toys, including Barbie playsets and Dora the Explorer toys, were recalled from around the world over the summer, after they were found to either contain excessive amounts of lead paint or had small magnets that could easily be swallowed by children.

Merchandise based on the Transformers film, Dr Who Dalek helmets, Barbie products and the Roary remote control car are said to be among the products that could see supplies run short, according to Retail Week.

Woolworths head of toys Nick Hill told the magazine: “There will be plenty of stock at Woolworths of the most popular toys for the start of the Christmas rush.

“But the situation is changing on a daily basis and it is too early to tell whether there will be shortages of the most popular lines as it gets closer to Christmas Eve.”

Woolworths said last month that it was looking to children’s ranges such as Transformers toys and accessories to help boost trading over Christmas, particularly in light of fears of a high street slowdown.

At its half-year results, chief executive Trevor Bish-Jones said the chain’s child-orientated product base meant it should withstand a fall in consumer confidence as spending on children’s items tends to hold up well, particularly with parents keen to maintain the Christmas spirit.

But a shortage of stocks in the key Christmas trading period could be a serious blow to the group which has been battling against falling sales and profits over recent years.