Opinion
On shelf dates
Breaking Bad – why not respecting on shelf date embargoes is an issue It has recently come to Toy World’s attention that independent retailers can lose out when it comes to new product releases, due to nationals breaking on shelf embargoes. There is currently no regulatory body in place to enforce consequences on retailers that break these embargoes: no OFTOY exists. It’s very rare that shelf dates on DVDs, CDs, games consoles, and other much anticipated new releases are broken, so why does it happen so often with toys? Jonika Kinchin speaks to a selection of retailers and an ex major buyer on why this happens so often and what can be done to put a stop to it.
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ith every new movie, new series, new game or new brand comes an influx of new toys, merchandise, DVDs and lots more. Some companies are lucky enough to highlight their new launches with special release times, demonstrated by the queue of people who wait outside a store at 11:59pm on a Friday night to get the most recent merchandise, whether it’s the latest Star Wars DVD, Hatchimal or Pokémon cards. For a retailer to have enough stock of a product or range that is so eagerly anticipated can have a huge effect on profits, especially for an independent. An ex major buyer who wished to remain anonymous told how, when the practice of timed releases began, toy retailers largely toed the line with their partners on shelf date embargoes. “There were often logistical challenges to get the product in the right place at the right time, which could result in the odd accidental lapse, but by and large the official release dates were observed,” we were told. However, as time went on, certain retailers started to break the release dates more and more frequently. There are a number of reasons why this can happen. Poor organisation is one, or a casual member of staff filling up an empty shelf with product that wasn’t supposed to be put out for a few days. “The finger has largely been pointed at the grocers as the most frequent culprit”, added the ex-buyer. It is highly unlikely that it all started as a deliberate strategy, however the more it happened, the bigger thorn it became in the side of toy specialists who take special care and attention with the sector. “Therefore, over time the breaking of on-shelf dates became more strategic”, added the buyer. “Not just by grocers, but often by specialist retailers as well as a reaction to their competitors’ activity”. Any independent retailer aims to become a one stop shop for customers looking for something in their specified area. It is vital to have the most
up to date and sought after stock, particularly when it comes to hotly anticipated releases. One independent retailer, who also wishes to remain anonymous, believes that this is a serious ongoing issue and that nine out of ten times, anything with an embargoed shelf date is broken by a larger retailer. “It is very rarely a toy retailer that does this, it’s more often a supermarket. Star Wars is always a prime example, I cannot remember a time when one of the films has come out and a shelf date hasn’t been broken by someone. It’s usually more than just one retailer as well, which is even worse”. With Pokémon recently having a resurgence, the retailer was incredibly frustrated when a particular supermarket broke the shelf date of the Pokémon Sun and Moon range, on top of which a line key to the video game release ended up in the three for
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two section. It is plain to see how putting a much sought after product in a deal such as a three-fortwo or buy-one-get-one-free can be something of a slap in the face for an independent retailer. Different companies send out stock at different times; therefore, purely due to distribution and delivery circumstances, a national retailer could receive stock way before an independent or vice versa. Most packages clearly have the shelf date labelled, therefore it’s difficult to pass off ignorance as a viable excuse, especially from supermarket retailers who deal with an abundance of shelf dates in different sectors. “A lot of companies don’t seem to trust independents, I am noticing more and more often that suppliers are launching product with specific stores first”, commented the retailer. “I think this is unfair and we are never told about