Jellycat Cuts U.K. Stockists Amid Brand Control Debate
Disgruntled retailers, some of which had supported the brand for over twenty years, took to social media to share how devastated they were to receive nonpersonalized letters informing them that Jellycat had dropped them.
The public backlash was severe, with Jellycat receiving numerous negative comments on its Trustpilot account and across social media.
A Jellycat spokesperson said via email, 'We have been humbled by our recent growth and are working hard to supply our stockists of all sizes – small and big - in a way that is fair and reasonable'.
Will this backlash cause the brand lasting damage? And with other viral toys on the scene, how long will Jellycat's growth last?
The Rise Of Jellycat
Jellycat was founded in 1999 by two brothers, Thomas and William Gatacre. In 2008, the Amuseables range launched, featuring inanimate objects with smiling faces and dangly limbs.
The Amuseables' success sparked intense growth, with Jellycat turning over an estimated £200 million by 2023.
The brand also enjoyed immense popularity on social media, with fan accounts springing up especially on TikTok. 'Jellycat hunts,' where fans would go from store to store to discover rare or limited edition characters, became a trend in their own right.
The brand took a distinct move towards more premium positioning with the launch of themed pop-ups in late 2023.
Partnering with FAO Schwarz in the US to create a diner experience, Galeries Lafayette in Paris with a patisserie, and Selfridges in London to offer fish and chips, the pop-ups combined exclusive Jellycats with fun and theatre to create experiences that sold out months in advance, showcasing the brand's creativity and innovation.The Darker Side Of Jellycat's Growth
With rapid growth and soaring popularity came new issues. Along with the growing issue of Jellycat thefts, current and former stockists cited that stock began to become a significant issue at the beginning of 2025.
Jellycat also made other significant changes to its wholesale model at the beginning of the year, replacing independent sales agents with an in-house team. Stockists had to order stock from a list sent by email, and if they didn't open the email in time, they missed their chance.
Several former and existing stockists gave comments via email for this article, many speaking anonymously, mindful of their relationship with the brand.
Stock availability was a common theme that came up in almost every conversation. They mentioned issues such as 'no stock', 'no information as to when the stock might be coming in,' and 'backorders cancelled without notice'.
Letters That Cut 100 U.K. Jellycat Stockists
Then came the letters. These were not personalized, but addressed to 'Dear Jellycat Stockist'.
Jellycat divided the stockists into three camps. Some received an 'official Jellycat' stockist letter and accompanying window sticker.
Others were informed that Jellycat would help them attain 'official stockist' status in 2026 by working on their 'Jellycat experience', yet the letters gave no clear criteria for what a 'good' experience looked like.
The letters informed others, including Georgie Stewart, co-founder of Stewarts of Bakewell, a gift, card, and party shop in the Peak District, England, that they were no longer stockists and should not place any more orders as Jellycat would not fulfill them.
Stewart, who had stocked Jellycat for over twenty years, was devastated. 'We have cried over this,' she said.
A Jellycat spokesperson said via email:
'We are big supporters of small business stockists and today there are over 1,200 independent stores across the UK stocking Jellycat. They've been the backbone of our business for over two decades… Our hope is that slightly reducing our stockists by 8% will help us to give better service to the remaining 92%, so they can offer their customers the best possible Jellycat experience. We are very sorry about this and the hurt it has caused… we just did not feel we had a better option.'Jellcat's Strategy
The message from Jellycat is clear - this shift was all related to stock.
'With the constant increase in demand for our soft toys continuing to mean there is limited supply, unfortunately, we're not able to support every shop that wants to stock Jellycat… We are also increasing supply as fast as we can without compromising our high quality and production standards.'
However, it seems likely that there is also an element of brand positioning at play.
In 2022, during rapid growth, Jellycat appointed a new CEO, Arnauld Meyselle, from Ren Skincare.
At Ren Skincare, he focused on establishing the brand as more sustainable, away from mass-market beauty, and towards a more premium positioning.
The Jellycat moves, and recent marketing activities such as the viral pop-ups suggest that the brand wants to position itself as more premium and consolidate its retailer base.
The fact that Jellycat brought the sales team in-house and changed the way orders are placed also speaks to its aim of driving efficiencies and managing costs as the business continues to grow.
As Therese Oertenblad, a wholesale expert, shares, 'in my 17 years, I've never seen a brand reshuffle its stockists in this way. It's undoubtedly a short-sighted attempt to cut costs by having fewer people to deal with.'Jellycat's Communication Style
Ultimately, controlling costs, improving efficiencies, and protecting the brand are solid and understandable business decisions.
The issue with Jellycat is partly what they did, but mostly how they did it. Jellycat is a brand known for spreading joy and fun, as one stockist put it, 'a little bit of fluffy joy to lighten my customers' day.'
By sending nonpersonalized letters to people who had spent thousands, even hundreds of thousands, of dollars over the years, the brand acted inconsistently with its joyful, fun image.
PR expert Fiona Minett adds, 'There was no empathy, no transparency, and that erodes trust.'
While Jellycat has issued public apologies, as of the time of writing, no direct apologies have been made to the cut businesses.
The treatment of these stockists has caused a negative backlash and bad feelings on social media from people who feel that the brand is turning its back on the shops that helped build the business to where it is today.What's next for Jellycat
Ultimately, the Jellycat story is a stark reminder that even a fast-growing, viral product will not make a brand immune to a negative backlash.
It highlights the importance of the relationship between brands and the small independent stockists championing them. It also reminds those stockists that they cannot rely too heavily on any one brand when, ultimately, that relationship is not in their control.
The question remains whether Jellycat has permanently damaged its relationship with the indie retail world that built it up or whether it can move beyond this chapter to a renewed era of growth and efficiency.
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