DTCRetail

Funko to Destroy Over $30 Million Worth of Toys

Funko, the popular toy and collectible manufacturer, has recently announced plans to destroy between $30 million and $36 million worth of inventory. This decision comes as

Published: Mar 17, 2023 9:28 AM

By RETAILBOSS Team

DTCRetail

Funko to Destroy Over $30 Million Worth of Toys

Funko, the popular toy and collectible manufacturer, has recently announced plans to destroy between $30 million and $36 million worth of inventory. This decision comes as a result of surplus stocks that have strained the company’s fulfillment network and increased operating costs. The excess inventory has not only been costly to store but has also negatively impacted Funko’s fulfillment operations, with the company’s facility running at 100% capacity when it needs to be at 80% for optimal efficiency.

View this post on Instagram A post shared by Pokémon (@pokemon) The inventory being destroyed is in good condition, and Funko is targeting its oldest stock first.

To alleviate operational constraints, the company is also discarding inventory that could potentially be sold in the future, as well as items that are currently selling well but represent more supply than needed.

Funko is using a third-party facility near its distribution center in Buckeye, Arizona, to provide certificates of destruction to intellectual property licensors.

Funko‘s CEO, Brian Mariotti, revealed that since the pandemic, the company has added approximately $85 million in annual fulfillment expenses despite similar overall throughput in its distribution center…

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Funko to Destroy Over $30 Million Worth of Toys

Funko, the popular toy and collectible manufacturer, has recently announced plans to destroy between $30 million and $36 million worth of inventory. This decision comes as

Unlock the rest of this story

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