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Toymakers plan on price hikes ahead of holiday shopping season

Barbie Role Models Doll Lineup Mattel Provided Photo 030919
Posted at 1:38 PM, Jul 29, 2021
and last updated 2021-07-29 13:43:38-04

The holiday shopping season may be more expensive for many Americans.

CNN reports Mattel CEO Ynon Kreiz said on an earnings call that it will raise prices in the second half of the year.

However, individual stores will make the call on whether to pass on their new cost to the consumer, according to CNN.

Mattel's most popular brands include Barbie and Hot Wheels.

"We haven't broken out [which products will be affected], but this is in response to some of the inflationary pressures," Kreiz told the BBC.

Kreiz reportedly said the price hike is due to global supply chain challenges.”

Jim Silver, a toy industry analyst and CEO of Toys, Tots, Pets & More, an industry review website, told CNN there may not be as many toys on the shelves this Christmas season.

"In respect to the hot toys, the supply chain issues will slow down the replenishment system," he said. "So if certain toys sell out quickly, it will take longer to replace that inventory. That being said, many holiday toys were made months ago, shipped already, and are already here or in route."

Mattel isn’t the only toymaker planning on a price increase. Hasbro, Inc. also plans on raising prices this year.

“We're implementing price increases during the third quarter that should be fully realized by the fourth quarter,” CFO Deb Thomas said during an earnings call, according to multiple outlets.

Hasbro did not specify how much it would increase prices.