Heather Ainsley
news@greenepublishing.com
Toy manufacturing giant, Mattel, warns of higher prices as the cost of supplies continues to go up due to the pandemic. Mattel says the company will increase the cost of toys to offset the increased cost of raw materials and shipping. They, like their rival Hasbro, are emerging from the impact of COVID that saw shops closed and supply chains disrupted, and they are not alone in their decision to raise prices. “We will be looking at increasing prices in the second half of the year,” Mattel's Chief Executive, Ynon Kriez, stated to the press. “We are not the only ones who did it; in our industry, everyone did - and no one is surprised.”
At the same time, the company announced “better than expected” sales of more than a quarter of a billion dollars in their second quarter, which is higher than anticipated, considering the impact of toy purchases during COVID. Net sales for the period increased by 40 percent, compared to the same time last year.
This fortunate profit for the company was due, in large part, to their size. While many companies in various industries worldwide experienced disruptions to their daily operations, such as conflicts with shipping and getting goods transported through ports due to the pandemic, Kreiz says that Mattel was able to avoid major conflicts by leveraging its size and the partnerships they had with vendors.
Mattel is an American toy manufacturing company, responsible for products and brands including Fisher-Price, Barbie, Monster High, Ever-After High, Polly Pocket, Enchantimals, Hot Wheels, Matchbox, Masters of the Universe, American Girl and Thomas & Friends. The company was founded in 1945 and has been an American staple with its hit toys, “Uke-A-Doodle,” Magic 8-Ball, Barbie and many more. The company has not yet divulged which brands will endure the price increase, but the increases will come just in time for the holiday shopping season. Parents hoping to gift specific toy brands to their children may want to shop early, as supply and demand, supply chain concerns, as well as the increased prices may result in tight toy-supply and could make this year's trendy toys harder to come by.