Toy makers are getting an expensive lesson in inventory management under the pandemic. Retail sales at Hasbro Inc. and Mattel Inc. soared in the second quarter as parents stocked up to entertain homebound children, the WSJ’s Paul Ziobro reports, but overall revenue actually declined because wholesale business lagged as retailers remained cautious on replenishing inventories. The wide split between point-of-sale trends, which toy makers say reflects underlying demand, and financial performance reflects the tumultuous retailing conditions in recent months. The toy makers say orders are weak as retailers remain wary of overstocking in an uncertain environment. Sales have moved online, but the toy makers are finding that digital sellers don’t require as much inventory on hand to stock shelves. Manufacturers still have high hopes for the critical holiday season, however, and they don’t expect parents to get conservative with the kids still at home.
– Bob
Operations and Supply Chain Management 