Corona virus impact on domestic retailers?

Discussion in 'Transformers 3rd Party Discussion' started by ROXXOR, Mar 6, 2020.

  1. ROXXOR

    ROXXOR Well-Known Member

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    I know we have a few retailers who visit the boards and some other members who know them personally. I'm curious to know how much of an impact the corona virus has had on them. Anyone know? Has it created significant financial stress (yet)?

    The virus has definitely stifled the manufacturers in China, where the majority of our third party products originate. I would imagine that this creates a disruption for retailers who are expecting to sell new releases.
     
  2. UtahRobotInDisguise

    UtahRobotInDisguise Herald of Utahcron

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    Significant? No. A headache? Yes. The slow supply came at a time where slow supplies are expected due to Chinese New Year, so it’s not as bad from that standpoint. I know a lot of product that distributors were expecting is still stuck at warehouses and shipyards. Most factories, regardless of product, are expecting to be up and running by the end of March having put very strict hygiene rules into effect.
     
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  3. TFXProtector

    TFXProtector TFW2005 Supporter

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    Several workers across the country were interviewed by Insider (Business) and some of them are downright terrified.

    They're afraid to be around people, they're afraid to handle packages coming out of the trucks, they're afraid to miss work if they do get sick and Walmart didn't help matters by saying "If an associate gets Coronavirus, they should stay home and get better", not "they need to stay home" or " we're making it mandatory to stay home to prevent mass infection", but no... " should".

    Stores like Costco, especially in the Northwest, are being emptied as we speak. Toilet paper, cleansers, certain types of food, all wiped out. Distribution centers are emptying out left and right.

    Sam's Club is getting hit pretty hard as well.

    I'd imagine that smaller retailers like BBTS and TCP are doing okay because they're online and it's all mail order. I'd imagine it would be worse if they had storefronts and involved in direct contact with customers.

    I do think they'll be affected by late pre-order fulfillment and stock running low due to nothing coming in from overseas, or coming in late, but I don't think they're there, quite yet.

    It's going to get a lot worse before it gets better. Both the illness and the "control" of it. The public is panicking, the news is stoking the fires of misinformation and fear-mongering, and the CDC/WHO are pulling their hair out.

    I hope we get some common sense going, soon.
     
  4. UtahRobotInDisguise

    UtahRobotInDisguise Herald of Utahcron

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    Well, Costco, Samsclub, don't sell transformers, so doesn't relate to the OP's question.

    Walmart is 100% into the fear mongering. Recently heard an interview with a prominent virologist from a Californian university, and he pointed out there are many types of Coronaviruses with none of them having vaccines. Also, 30% of the "colds" people get every year are caused by coronaviruses not a rhinovirus. The "pandemic" is concerning for the severity of symptoms seen by less than 7% of the population, but overall it's less of a concern than the typical flu strain or viral pneumonia strain. He said increasing hygiene procedures alone reduce your chances of getting it tremendously. Unfortunately, "Wash your hands a few times a day before eating and after touching anything out in public" isn't a good enough headline for the " apocalyptic journalism" of today.
     
  5. TFXProtector

    TFXProtector TFW2005 Supporter

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    They don't relate, but I was trying to give a bigger picture, here, so we could see the difference between big box retailers and the little guys and if the big boxers are having problems at both the retail and distribution levels, so could smaller stores... In time.

    There's definitely a domino effect going on. One or two topple right now, the rest could fall given the right circumstances.

    All things considered, I think my answer was overall relevant.

    And Walmart's disgusting. They're so full of crap and Target isn't much better. Their CEO said they're allowing their China/Asia-based workers to work from home to avoid infection/spreading. (Woo. Wow. Much awesome.) Yet, store level associates basically have to fend for themselves.

    What people aren't understanding is, if proper protocols aren't followed, it's going to get a lot worse. If you're sick, STAY HOME! Screw the job, find another if need be, but don't become a statistic to keep this machine going.

    I find it odd that stores are having record numbers in sales right now, and fear-mongering is taking first place.

    I think it's disgusting that stores are exploiting and cashing in on this whole thing. Yes, the customers are to blame for being stupid, but man... The stores aren't helping things with "well, maybe you should buy this, for protection..."

    How people sleep at night, I'll never know.
     
  6. boomerdave

    boomerdave Owns three Ditka figures. O_o Veteran

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    I bought a Chogokin DX Valkyrie from a local vendor recently and called to ask a shipping question. When I got done I said "Sorry to take up your time with silly questions" and he said "Well hey, at least you didn't ask if you could get Coronavirus from our toys so thanks for that!"

    Clearly they're having to deal with it to some degree or another, even if it's just silly questions related to it.
     
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  7. Deceptimatrix

    Deceptimatrix Warrior Elite

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    Not true. Although not frequent, they've had various exclusives over the years and also Generations Metroplex. But yeah pretty rare
     
  8. edgecrusher

    edgecrusher "She wanted nothin', and I delivered." TFW2005 Supporter

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    They're definitely feeling it when it comes to 3P TFs, but a fair amount of first party products are not made in China (like Takara's move to Vietnam) and those have still been distributed and received in the meantime. That plus good stock management to keep some inventory on hand to sell through has sustained them somewhat but that will change if March ETAs turn into April then May. Think of the stuff that was due to arrive just after CNY, which has yet to be produced or awaiting finished assembly and packing, that requires workers to return in order to get it shipped out to distributors. For the most part that stuff still hasn't moved, which continues to push further out the arrival time at retailers.
     
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  9. ROXXOR

    ROXXOR Well-Known Member

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    I was speculating about it more from a cash-flow perspective. I would imagine that a good chunk of revenue flows into these retailers when there's a highly anticipated new release where they quickly convert a volume of pre-orders to cash. If all the new releases are pushed back a couple of months, that could be significant. It's could potentially be compounded if a retailer paid for large quantity(s) in advance, and then they won't have the units to sell.

    Given that so much of the product originates in China, some of these retailers may effectively have all their eggs in one basket.