We do believe that some elements of the pandemic’s impact on toy consumption will endure. We think consumers are now putting a premium on family and the holidays, including toys as a way to spend more time with the family.Gerrick Johnson, BMO Capital Markets
Two huge labor disputes, in the railways and at the ports, threaten to re-tangle supply chains in the U.S. And the White House is pushing to avert disaster, engaged at a level not seen in decades.
The stakes are sky-high economically. A shutdown of the nation’s rail system could cost $2 billion a day, according to an industry estimate, and we’ve already seen what backed up ports do to the economy.https://www.axios.com/2022/09/12/possibility-of-railway-and-port-strikes-threaten-supply-chain-recovery?utm_source=pocket_mylistPossibility of railway and port strikes threaten supply chain recovery, Emily peck, Axios, September 12, 2022
[Why the U.S. dollar is so strong]:
Marvin Barth, a former U.S. Treasury economist, thinks it is all about innovation. He now runs an independent research firm called Thematic Markets and his basic thesis is that the U.S.’s leading position in academic research, and the close links of universities and business, gave the country a head start in computerization in the 1970s and early 1980s, in the internet in the 1990s and in newer internet applications and artificial intelligence more recently.https://www.wsj.com/articles/why-is-the-dollar-so-strong-american-innovation-11662903959?utm_source=pocket_mylistWhy Is the Dollar So Strong? American Innovation, James Mackintosh, Wall street journal, september 11, 2022
(Spin Master) Management mentioned that toys below $10 and above $100 have seen the largest negative impact from inflation, with <$10 toys seeing more declines. Toys in the $20 to $99 range are outperforming and growing, as they are perceived to offer the most value. Management also noted that household incomes >$100,000 are growing toy sales +7%, but toy spending by households that make <$50,000 is about flat.Gerrick Johnson, BMO Capital Markets