14-15_17.qxp_New Grid 28/10/2021 16:10 Page 14
Industry Issue: Stock Issues
CHRISTMAS CANCELLED At the time of going to press at the end of October, due to a massive bottleneck at Felixstowe, ships carrying goods, including Christmas gifts, are currently being diverted to EU ports, inevitably causing new delays. And if that wasn’t bad enough, a huge shortage of HGV drivers in Britain isn’t helping, with shoppers being warned to expect a ‘nightmare’ Christmas. So how have gift retailers and suppliers been mitigating stock issues to ensure that there’s product on the shelves for the allimportant run-up to Christmas? PG&H spoke to both suppliers and retailers for their views. Above: Worldwide shipping delays are being blamed on new outbreaks of Covid in China, with the UK’s labour shortage being blamed on Brexit.
A Short-Term Problem “The last few months have, without a doubt, caused issues of supply due to the global container shortage in, in particular, ex-Chinese ports,” comments Mark Howard, managing director of Puckator. “These issues have been exacerbated by port delays in Europe and the UK, soaring demand in North America, and an imbalance in equipment globally, with the repositioning of empty containers still very much a work in process.” Continues Mark: “Apart from problems of container availability, other factors such as manpower shortages in factories, port lockdowns in China due to Covid, and China’s dual control of energy consumption, have all impacted on delivery times. Nonetheless, while the last few weeks have caused Puckator continuity of supply issues for some products, it is very much a short-term problem. Working hard with our cargo agent partners, and focusing on shipping 40ft containers or Hi-Cubes only, volumes currently in transit are at very high levels. Although the shortage of containers is likely to continue until after the Chinese New Year in February 2022, the strong relationships we have with our cargo agents should ensure that during Q4 of 2021 our stock levels will return to normal levels.” Above: Mark Howard, managing director, Puckator.
14
Progressive Gifts & Home Worldwide
Stock To Spare “For many reasons, I think Christmas will be something of a shock in terms of product shortages, coupled with prices on the high street,” says Mike Winch, founder and owner of Candlelight. “With that in mind, in April, we took the decision to increase our purchasing for the back end of this year and early next year, on the basis that if you don’t have stock then you can’t sell anything,” he explains. “We know from our own experience that a lot of major retailers have been hugely let down this year, and fortunately we are more than able to fulfil those orders. Our warehouse is bulging with stock, so for all retailers - both big and small - we have the stock to not only fulfil immediate orders, but also to supply stock to cover the January/February period, when the shelves need filling again.” Above: Mike Winch, founder and owner of Candlelight.
We’re Well Stocked “I don’t think that Christmas will be the Armageddon that people are predicting,” says Nigel Biggs, ceo, Rex London. “People will just be buying earlier. We are well stocked and carry stock of most lines. Earlier in the year, we realised the current situation was likely to happen and forward ordered. Unusually, we have run out of a few lines - considerably less than 1% - which is simply because things are taking longer to arrive. Looking ahead, we are physically ordering product for next Christmas, which is due in April. We are also trying to look beyond China, as we feel it is prudent to source from other countries too.” Right: Nigel Biggs, ceo, Rex London.
