Toy industry Stock Index up 9%
Bloomberg Intelligence cites Costco, Target and Walmart as “best positioned’ to handle disruptions in the supply chain. Reason given: They acted early.
Good News: “Total nonfarm payroll employment rose by 531,000 in October, and the unemployment rate edged down by 0.2 percentage point to 4.6 percent, the U.S. Bureau of Labor Statistics reported today. Job growth was widespread, with notable job gains in leisure and hospitality, in professional and business services, in manufacturing, and in transportation and warehousing.” Bureau of Labor Statistics News Release
Warehouse space in the United States is at 96.4% of capacity. It’s even worse in Los Angeles, where it is at 99%. According to sources, the ideal number is 85%. The warehouse capacity squeeze won’t just impact B2B. Those looking to purchase online may not get the goods they seek because there is no room for them in the warehouse. According to a Bloomberg article, “US warehouses running out of room amid supply chain crisis,” “The U.S. will use over 1 billion square feet of storage space this year, compared to 800 million last year.”
Macy’s is the world’s most popular department store, according to a survey conducted by Stokemont. That would be of little consequence to toy industry members in past years - a bit like being the fastest snail in a snail race.Now that Macy’s is co-habiting with Toys R Us, it made my ears perk up. Will Macy’s become a player in the toy world? It’s an intriguing thought.