Retailers fear shortages as coronavirus triggers closures in China

Coronavirus crisis hits British retailers as Primark, Asos and Halfords fear supply shortages after panic triggers factory closures across China

  • Chinese factory closures could affect British retail giants and spark shortages 
  • European seaports have faced warnings of suppressed trade with Asia
  • A number of ports are thought to have already pulled scheduled trips to Britain

British retailers are preparing for stock shortages over the coronavirus outbreak.  

Factory closures across China could affect giants like Halfords, B&M, DFS, Asos and Primark, with some analysts suggesting the possibility of gaps being left on store shelves. 

‘A lot of disruption’ is expected from next month as the Covid-19 outbreak forces Asian container ships to cancel their plans to visit Britain, industry leaders have claimed. 

Britain’s biggest car manufacturer Jaguar Land Rover has been flying components from China in suitcases – and might run out within a fortnight, the Times reports. 

And JCB has curbed production at 11 domestic plants while Chinese suppliers facing the ongoing coronavirus crisis ‘struggle’ to ship parts.

European seaports have faced warnings that the shutting down of plants across China could mean suppression of the country’s trade with the continent by a fifth.   

Factory closures across China could affect giants like Halfords, B&M, DFS, Asos and Primark, with some analysts suggesting the possibility of gaps being left on store shelves (file image)

Employees work on a production line manufacturing protective suits at a clothing factory, as the country is hit by an outbreak of the novel coronavirus, in Shijiazhuang, Hebei province, China February 17

Chief executive of the British Ports Association Richard Ballantyne said: ‘We’re getting news out of the Chinese ports that there is going to be a lot of disruption in the first quarter.’ 

He added: ‘It could have an impact on retail and other parts of our logistics sector.’ 

Greg Lawless, of Shore Capital, said shortages of electrical goods like televisions and toasters could start appearing on shelves within the next six weeks.   

‘It remains a fluid situation but clothing retailers are fine for now,’ he said.  

‘The general merchandise retailers less so, as they are more exposed to Chinese sourcing.’

Ultimate Products, who are behind Russell Hobbs kitchen products, has been warned of possible delays, as have Kleenze mops and Dreamtime duvets.

A number of ports are thought to have already pulled scheduled trips to Britain and European ports.

One unnamed executive told the Times they were already beginning to see ‘blanks’ in the schedules. 

‘A lot of disruption’ is expected from next month as the Covid-19 outbreak forces Asian container ships to cancel their plans to visit Britain, industry leaders have claimed (file image)

Earlier this week Apple told investors that the disease was strangling the supply of new iPhones by forcing the company to shut down its Chinese factories

Analyst at shipbroker Braemar ACM, Jonathan Roach, said disruption was expected to carry on for some time ‘well into’ the second quarter of 2020, between April and June. 

Fashion retailer Joules, which imports 90 per cent of its product range from China, is now reportedly looking at how to shift manufacturing to Turkey and Bangladesh.  

Retail analyst Charles Hall, from City brokerage Peel Hunt, said ‘quite a few’ retailers had seen deliveries from China delayed. 

The British Retail Consrtium’s Andrew Opie said that the industry is ‘adept’ at dealing with disruptive circumstances – and is now seeking alternative suppliers to avoid impact for their customers. 

This week the working hours of 4,000 employees at JCB were slashed as the company attempted to deal with parts shortages from Chinese suppliers.

By slowing down production at its factories and introducing a 34-hour week until further notice, the company intends to maintain the workforce at its current level.

Despite the reduction in hours, employees will be paid for a 39-hour week and will ‘bank’ the hours, working them back later in the year.

While production has been unaffected by the situation in China so far, more than 25 per cent of the company’s suppliers in the country are closed. Others are working at reduced capacity, meaning that a shortage of components is expected in the next few weeks.

JCB chief operating officer Mark Turner said: ‘These measures will ensure that while we will produce machines in lower than anticipated numbers, we will do so with the same number of employees, whose skills we will need to fulfil customers’ orders when the situation returns to normal. We anticipate a surge in production levels once this period of supply disruption has passed.’

The supply of video games and toys is already being hit by the coronavirus outbreak.

This week the working hours of 4,000 employees at JCB were slashed as the company attempted to deal with parts shortages from Chinese suppliers (file photo, December 2013, JCB factory in Rochester)

Workers producing protective clothing at a factory in Wuxi, in China’s eastern Jiangsu province, February 8

More than 80 per cent of the toys purchased in the UK are manufactured in China and shortages are beginning to be felt. MGA Entertainment, whose L.O.L Surprise! dolls are made in China, describes the situation as a ‘disaster’, with production dropping 60 per cent compared with last year.


The vast majority of confirmed infections of the Wuhan coronavirus have been diagnosed in China.

But more than 25 countries or territories outside of the mainland have also declared infections: 




































































































Because of similar slowdowns in production, toymaker Tomy has lowered its earnings estimates for the end of the financial year.

Rival Mattel has also said it expects production delays because of the extended closure of Chinese factories. As for Nintendo, there are already shortages of its popular Switch consoles in Japan with similar problems expected in Europe come April.

And earlier this month Facebook stopped taking new orders for its Oculus Quest virtual reality headsets due to delays in hardware production as the result of the viral outbreak.

Shortages of components have put the brakes on car production across the world, leaving manufacturers scrabbling to secure parts.

Jaguar Land Rover revealed this week that it has had to resort to flying components out of China in suitcases in a bid to prevent its UK plants from closing by the end of this month.

Transporting parts by air is quicker than by sea — but more expensive, and only possible with far smaller volumes than car- makers conventionally need.

Sir Ralf Speth, chief executive of the UK’s biggest car maker, said it was rationing key fobs, with each new vehicle getting only one.

Earlier this month Nissan temporarily suspended production at its manufacturing plant in Japan, while South Korean car-maker Hyundai halted production lines because of a shortage of parts from China. Fiat has also now shut a plant in Serbia where the Fiat 500L model is made due to a shortage of components.

Other multinationals, including Ford and Peugeot Citroen, have announced they are being affected by the disruption, while Tesla for the first time flagged up ‘health epidemics’ as a future risk factor.

Analysts at Swiss investment bank UBS expect car sales in China to fall by more than 50 per cent this month. That is expected to hit the German carmakers VW, BMW and Daimler hard, as China is their biggest market.

The news comes amid confirmation that Britons on the coronavirus-stricken cruise ship docked off the coast of Japan will be evacuated by plane on Friday. 

The evacuation flight for the 74 Britons quarantined on board the Diamond Princess will leave Tokyo on Friday, Foreign Secretary Dominic Raab said on Wednesday evening. 

On their return they will be housed in Arrowe Park Hospital on the Wirral. 

British passengers have had to remain in quarantine until their evacuation flight was put in place, as a total of 621 cases of the the virus were diagnosed on board.

Around 170 Australians have been allowed to leave to board a flight from at Haneda airport chartered by their government.     


Someone who is infected with the coronavirus can spread it with just a simple cough or a sneeze, scientists say.

Over 2,000 people with the virus are now confirmed to have died and more than 75,000 have been infected. But experts predict the true number of people with the disease could be as high as 350,000 in Wuhan alone, as they warn it may kill as many as two in 100 cases.  Here’s what we know so far:

What is the coronavirus? 

A coronavirus is a type of virus which can cause illness in animals and people. Viruses break into cells inside their host and use them to reproduce itself and disrupt the body’s normal functions. Coronaviruses are named after the Latin word ‘corona’, which means crown, because they are encased by a spiked shell which resembles a royal crown.

The coronavirus from Wuhan is one which has never been seen before this outbreak. It has been named SARS-CoV-2 by the International Committee on Taxonomy of Viruses. The name stands for Severe Acute Respiratory Syndrome coronavirus 2.

Experts say the bug, which has killed around one in 50 patients since the outbreak began in December, is a ‘sister’ of the SARS illness which hit China in 2002, so has been named after it.

The disease that the virus causes has been named COVID-19, which stands for coronavirus disease 2019. The virus itself is called SARS-CoV-2.

Dr Helena Maier, from the Pirbright Institute, said: ‘Coronaviruses are a family of viruses that infect a wide range of different species including humans, cattle, pigs, chickens, dogs, cats and wild animals. 

‘Until this new coronavirus was identified, there were only six different coronaviruses known to infect humans. Four of these cause a mild common cold-type illness, but since 2002 there has been the emergence of two new coronaviruses that can infect humans and result in more severe disease (Severe acute respiratory syndrome (SARS) and Middle East respiratory syndrome (MERS) coronaviruses). 

‘Coronaviruses are known to be able to occasionally jump from one species to another and that is what happened in the case of SARS, MERS and the new coronavirus. The animal origin of the new coronavirus is not yet known.’ 

The first human cases were publicly reported from the Chinese city of Wuhan, where approximately 11million people live, after medics first started publicly reporting infections on December 31.

By January 8, 59 suspected cases had been reported and seven people were in critical condition. Tests were developed for the new virus and recorded cases started to surge.

The first person died that week and, by January 16, two were dead and 41 cases were confirmed. The next day, scientists predicted that 1,700 people had become infected, possibly up to 7,000.

Just a week after that, there had been more than 800 confirmed cases and those same scientists estimated that some 4,000 – possibly 9,700 – were infected in Wuhan alone. By that point, 26 people had died. 

By January 27, more than 2,800 people were confirmed to have been infected, 81 had died, and estimates of the total number of cases ranged from 100,000 to 350,000 in Wuhan alone.

By January 29, the number of deaths had risen to 132 and cases were in excess of 6,000.  

By February 5, there were more than 24,000 cases and 492 deaths.

By February 11, this had risen to more than 43,000 cases and 1,000 deaths. 

A change in the way cases are confirmed on February 13 – doctors decided to start using lung scans as a formal diagnosis, as well as laboratory tests – caused a spike in the number of cases, to more than 60,000 and to 1,369 deaths. 

Where does the virus come from?

According to scientists, the virus has almost certainly come from bats. Coronaviruses in general tend to originate in animals – the similar SARS and MERS viruses are believed to have originated in civet cats and camels, respectively.

The first cases of COVID-19 came from people visiting or working in a live animal market in the city, which has since been closed down for investigation.

Although the market is officially a seafood market, other dead and living animals were being sold there, including wolf cubs, salamanders, snakes, peacocks, porcupines and camel meat. 

A study by the Wuhan Institute of Virology, published in February 2020 in the scientific journal Nature, found that the genetic make-up virus samples found in patients in China is 96 per cent similar to a coronavirus they found in bats.

However, there were not many bats at the market so scientists say it was likely there was an animal which acted as a middle-man, contracting it from a bat before then transmitting it to a human. It has not yet been confirmed what type of animal this was.

Dr Michael Skinner, a virologist at Imperial College London, was not involved with the research but said: ‘The discovery definitely places the origin of nCoV in bats in China.

‘We still do not know whether another species served as an intermediate host to amplify the virus, and possibly even to bring it to the market, nor what species that host might have been.’  

So far the fatalities are quite low. Why are health experts so worried about it? 

Experts say the international community is concerned about the virus because so little is known about it and it appears to be spreading quickly.

It is similar to SARS, which infected 8,000 people and killed nearly 800 in an outbreak in Asia in 2003, in that it is a type of coronavirus which infects humans’ lungs.  

Another reason for concern is that nobody has any immunity to the virus because they’ve never encountered it before. This means it may be able to cause more damage than viruses we come across often, like the flu or common cold.

Speaking at a briefing in January, Oxford University professor, Dr Peter Horby, said: ‘Novel viruses can spread much faster through the population than viruses which circulate all the time because we have no immunity to them.

‘Most seasonal flu viruses have a case fatality rate of less than one in 1,000 people. Here we’re talking about a virus where we don’t understand fully the severity spectrum but it’s possible the case fatality rate could be as high as two per cent.’

If the death rate is truly two per cent, that means two out of every 100 patients who get it will die. 

‘My feeling is it’s lower,’ Dr Horby added. ‘We’re probably missing this iceberg of milder cases. But that’s the current circumstance we’re in.

‘Two per cent case fatality rate is comparable to the Spanish Flu pandemic in 1918 so it is a significant concern globally.’

How does the virus spread?

The illness can spread between people just through coughs and sneezes, making it an extremely contagious infection. And it may also spread even before someone has symptoms.

It is believed to travel in the saliva and even through water in the eyes, therefore close contact, kissing, and sharing cutlery or utensils are all risky. 

Originally, people were thought to be catching it from a live animal market in Wuhan city. But cases soon began to emerge in people who had never been there, which forced medics to realise it was spreading from person to person.

There is now evidence that it can spread third hand – to someone from a person who caught it from another person.

What does the virus do to you? What are the symptoms?

Once someone has caught the COVID-19 virus it may take between two and 14 days, or even longer, for them to show any symptoms – but they may still be contagious during this time.

If and when they do become ill, typical signs include a runny nose, a cough, sore throat and a fever (high temperature). The vast majority of patients – at least 97 per cent, based on available data – will recover from these without any issues or medical help.

In a small group of patients, who seem mainly to be the elderly or those with long-term illnesses, it can lead to pneumonia. Pneumonia is an infection in which the insides of the lungs swell up and fill with fluid. It makes it increasingly difficult to breathe and, if left untreated, can be fatal and suffocate people. 

What have genetic tests revealed about the virus? 

Scientists in China have recorded the genetic sequences of around 19 strains of the virus and released them to experts working around the world. 

This allows others to study them, develop tests and potentially look into treating the illness they cause.   

Examinations have revealed the coronavirus did not change much – changing is known as mutating – much during the early stages of its spread.

However, the director-general of China’s Center for Disease Control and Prevention, Gao Fu, said the virus was mutating and adapting as it spread through people.

This means efforts to study the virus and to potentially control it may be made extra difficult because the virus might look different every time scientists analyse it.   

More study may be able to reveal whether the virus first infected a small number of people then change and spread from them, or whether there were various versions of the virus coming from animals which have developed separately.

How dangerous is the virus?  

The virus has a death rate of around two per cent. This is a similar death rate to the Spanish Flu outbreak which, in 1918, went on to kill around 50million people.

However, experts say the true number of patients is likely considerably higher and therefore the death rate considerably lower. Imperial College London researchers estimate that there were 4,000 (up to 9,700) cases in Wuhan city alone up to January 18 – officially there were only 444 there to that date. If cases are in fact 100 times more common than the official figures, the virus may be far less dangerous than currently believed, but also far more widespread. 

Experts say it is likely only the most seriously ill patients are seeking help and are therefore recorded – the vast majority will have only mild, cold-like symptoms. For those whose conditions do become more severe, there is a risk of developing pneumonia which can destroy the lungs and kill you.

Can the virus be cured? 

The COVID-19 virus cannot currently be cured and it is proving difficult to contain.

Antibiotics do not work against viruses, so they are out of the question. Antiviral drugs can work, but the process of understanding a virus then developing and producing drugs to treat it would take years and huge amounts of money.

No vaccine exists for the coronavirus yet and it’s not likely one will be developed in time to be of any use in this outbreak, for similar reasons to the above.

The National Institutes of Health in the US, and Baylor University in Waco, Texas, say they are working on a vaccine based on what they know about coronaviruses in general, using information from the SARS outbreak. But this may take a year or more to develop, according to Pharmaceutical Technology.

Currently, governments and health authorities are working to contain the virus and to care for patients who are sick and stop them infecting other people.

People who catch the illness are being quarantined in hospitals, where their symptoms can be treated and they will be away from the uninfected public.

And airports around the world are putting in place screening measures such as having doctors on-site, taking people’s temperatures to check for fevers and using thermal screening to spot those who might be ill (infection causes a raised temperature).

However, it can take weeks for symptoms to appear, so there is only a small likelihood that patients will be spotted up in an airport.

Is this outbreak an epidemic or a pandemic?   

The outbreak is an epidemic, which is when a disease takes hold of one community such as a country or region. 

Although it has spread to dozens of countries, the outbreak is not yet classed as a pandemic, which is defined by the World Health Organization as the ‘worldwide spread of a new disease’.

The head of WHO’s global infectious hazard preparedness, Dr Sylvie Briand, said: ‘Currently we are not in a pandemic. We are at the phase where it is an epidemic with multiple foci, and we try to extinguish the transmission in each of these foci,’ the Guardian reported.

She said that most cases outside of Hubei had been ‘spillover’ from the epicentre, so the disease wasn’t actually spreading actively around the world.

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