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Coronavirus Impact on Retail

The Coronavirus (COVID-19) has already brought misery to countless thousands of families, and we all share responsibility for supporting our respective communities as we overcome the challenges presented by the outbreak.

The extent to which the Coronavirus outbreak will impact on retail supply chains is unknown and will remain uncertain for some time. Nevertheless, it has already generated considerable disruption, and it seems logical that the longer factories remain closed, the greater the knock on effect. You may not have product manufactured in China, but some raw materials you rely upon may themselves be held up.

Below you will find links to relevant articles, commentary and recommendations on what you can do to navigate through these uncertain times. This page will be continuously updated as more news becomes available.

Krunchbox is committed to helping and supporting retailers and their suppliers in getting better visibility of and managing their supply chains to ensure continuity of supply.

Last updated February 27, 2020.

Microsoft says Windows and Surface businesses will miss expectations due to coronavirus
February 26, 2020 — Kim Lyons, The Verge
The culprit, as is the case with many other tech companies, is supply chain slowdowns due to the effects of the coronavirus outbreak.

Hyundai Australia hit by lengthy delays due to parts shortages caused by coronavirus factory stoppages
February 24, 2020 — Joshua Dowling,
Hyundai predicts about half its cars due in the coming months will be delayed by Chinese parts shortages caused by shutdowns prompted by the coronavirus.

Clicking Buy on Amazon? It’s Trying to Prevent a Coronavirus Caveat
February 20, 2020 — Karen Weise and Michael Corkery, The New York Times
The Everything Store, which stocks more than 100 million items, is working to avoid disruptions in its supply chain.

Carriers report reefer, truck shortages in China’s stalled supply chains
February 19, 2020 — Matt Leonard, Supply Chain Dive
China is experiencing a shortage of truck drivers as a result of the COVID-19 outbreak and quarantine and there is also a limited supply of reefer plugs in China’s ports, resulting in congestion and a lack of availability.

Tips on how to manage inventory during the Coronavirus uncertainty
February 17, 2020 — John Pitman, krunchbox CEO
Our CEO, John Pitman, reflects on how to think about your supply chain inventory, and offers suggestions on how to manage dwindling stock.

10 Top Supply Chain Risks amid the Coronavirus Outbreak
February 14, 2020 — Resilience360, DHL
DHL’s top ten challenges organizations will need to prepare for amid the ongoing coronavirus outbreak.

Breville Shares Surge After Punt On Excess Inventory
February 14, 2020 — David Richards, ChannelNews
Breville shares have surged after a punt on delivering excess inventory ahead of the coronavirus, to beat US tariff’s on goods manufactured in China has paid off.

Searches for suppliers outside China double as coronavirus spreads
February 13, 2020 — Matt Leonard, Supply Chain Dive
Shippers are seeking alternative suppliers outside of China to make up for delays resulting from the continued production standstill in China’s Hubei​ province caused by the COVID-19 outbreak.

NRF: Coronavirus could cause 13% import drop at US ports
February 10, 2020 — Morgan Forder, Supply Chain Dive
Major U.S. ports could see a nearly 13% drop in containerized retail imports in February due to extended production shutdowns caused by the coronavirus outbreak in China.

87% of US businesses in China expect coronavirus to impact revenue
February 10, 2020 — Matt Leonard, Supply Chain Dive
Eighty-seven percent of U.S. companies operating in China expect coronavirus to impact 2020 revenues. Of those forecasting a drop, 24% expect it to fall by 16% or more.

‘No-deal’ emergency plan revived as coronavirus threatens shortages
February 9, 2020 — Tim Shipman, Sabah Meddings, Ben Clatworthy and Sam Chambers, The Times
UK officials assess the risks of vital goods becoming unavailable as factories remain closed in China.

Lifeblood of Amazon merchants threatened as coronavirus infects Chinese workers
February 7, 2020 — Lisa Baertlein, Reuters
Amazon sellers are preparing for the impact factory closures will have on their relationships with the online retailer.

‘Worst nightmare’: Product shortages in store as retailers brace for coronavirus impact
February 5, 2020 — Dominic Powell, The Sydney Morning Herald
Many of Australia’s major retailers will face some stock availability issues that affect earnings in the coming months as factories remain closed in China.

Retailer supply chain fears as coronavirus threat grows
February 5, 2020 — Sue Mitchell, Senior Reporter for the Australian Financial Review
Australian Financial Review interview with John Pitman, krunchbox CEO, on how the disease will disrupt retail supply chains.

China offers force majeure escape clause for factories that breach supply contracts as coronavirus shutdowns leave assemblies idle
February 3, 2020 — Georgina Lee, South China Morning Post
The Chinese government is stepping in to help a Peugeot car parts manufacturer in order to prevent potential legal action for being unable to fill contractual obligations due to the outbreak.

Maersk, CMA CGM blank sailings as coronavirus spreads
February 3, 2020 — Shefali Kapadia, Senior Editor for Supply Chain Dive
Supply chain services companies Maersk and CMA CGM announce blank sailings as the container lines see decreased demand due to the coronavirus outbreak in China and the extension of the Lunar New Year holiday.

Coronavirus and Retail
January 31, 2020 — John Pitman, krunchbox CEO
An outline of supply chain risks and delays for wholesalers.


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