Coronavirus: Primark could be hit with supply shortages

Accessories, a major category for licensed lines, likely to be worst hit later in the year should factory downtime continue, says parent firm Associated British Foods

Written by Rhys Thomas

Posted 24.02.2020 | Retail

Coronavirus: Primark could be hit with supply shortages thumbnail

Primark may face supply shortages later this year as a result of factory closures in China put in place to halt the spread of coronavirus.

Speaking to Reuters, the fast-fashion retailer’s parent company Associated British Foods says routine stockpiles ahead of the Chinese Lunar New Year celebrations would mean there would be few issues in the short term. 

But if manufacturing slowdown continues, supply shortages of some lines would be scarce.

John Bason, Financial Director of ABF, highlighted accessories, one of the retailer’s biggest categories for licensed lines, as one of the main concerns.

Despite looking for alternative suppliers in other manufacturing hubs such as Bangladesh, Turkey and areas of Southeast Asia, he says “China is very good at [accessories]” making them “harder to source from elsewhere”.

The coronavirus death toll rose to more than 2,440 over the weekend, with almost 80,000 confirmed cases around the world.

MGA Entertainment, the company behind the L.O.L. Surprise dolls, has warned of similar shortages of its toys should factories remain silent. Founder and CEO Isaac Larian predicts a global slowdown in toy output, as “the biggest toy factory in China” earlier this month extended its downtime.


Royal Mail celebrates 100 years of Rupert Bear thumbnail

Royal Mail celebrates 100 years of Rupert Bear

Royal Mail, in collaboration with DreamWorks Animation and Universal Brand Development has launched a set of eight stamps to mark ...

Festival of Licensing unveils community and wellbeing programme sponsored by ViacomCBS Consumer Products thumbnail

Festival of Licensing unveils community and wellbeing programme sponsored by ViacomCBS Consumer Products

The online programme will feature three complementary elements: Family Friendly Dance & Yoga, Retro Workout Class, and Self-Care

APC Kids adds new international broadcast partners to CTC Media Kid-E-Cats thumbnail

APC Kids adds new international broadcast partners to CTC Media Kid-E-Cats

The company has secured a raft of deals across all three seasons of CTC Media’s hit pre-school animation show

Press Releases

Industry leaders join The Key Buyers Event: Digital Edition from 8-15 June thumbnail

Industry leaders join The Key Buyers Event: Digital Edition from 8-15 June

Jay Roewe, SVP of production for HBO, Erik Barmack, founder of Wild Sheep, Marc Lorber, SVP, international co-productions & acquisitions ...

Energizer spotlights Masha the Bear thumbnail

Energizer spotlights Masha the Bear

Animaccord and Energizer partner on Masha and the Bear licensed torches, heading to retail across EMEA in 2020

Elmo’s World comes to UK’s Tiny Pop in 2020 thumbnail

Elmo’s World comes to UK’s Tiny Pop in 2020

Kids’ TV channel expands its Sesame Street content with new series of short-form, interactive episodes

Milkshake picks up Pirata & Capitan S2 thumbnail

Milkshake picks up Pirata & Capitan S2

UK kids’ block acquires second series of the Millimages pre-school animation after successful first run