Toy sales up—and the industry has Toys ‘R’ Us to thank
The toy industry is having a comeback, boosted by the liquidation of the Toys “R” Us retail empire. The U.S. toy industry grew its dollar sales by 7% to $7.9 billion in the first half of 2018, a period including the Toys “R” Us liquidation.
“It is likely that the Toys “R” Us news has kept toys top-of-mind for parents and grandparents when shopping for kids in general, benefiting both consumers and the industry,” said Juli Lennett, senior VP and industry advisor, toys, The NPD Group. “I am also convinced that the strong toy industry growth so far this year has been at least partially supported by the empathy that people felt towards losing a store like Toys “R” Us. I think it brought about an emotional response that resulted in parents buying more toys overall.”
The strongest growth driver in the first half came from toys priced $5 to $19.99, led by L.O.L. Surprise!, Total Marvel, Fingerlings, Hatchimals, and Soft N Slo Squishes.
Looking ahead, Lennett predicted that the toy retail space will continue to bustle with activity through the end of 2018.
“Existing toy retailers have announced they will be dedicating more space and will carry more toys this holiday season both in-store and online,” she said. “We’re also seeing new store formats emerge that are more experiential, and we will have new toy retailers entering the space. The industry has shown to be proactive in compensating for the dollars Toys “R” Us has left on the table, and more.”
“It is likely that the Toys “R” Us news has kept toys top-of-mind for parents and grandparents when shopping for kids in general, benefiting both consumers and the industry,” said Juli Lennett, senior VP and industry advisor, toys, The NPD Group. “I am also convinced that the strong toy industry growth so far this year has been at least partially supported by the empathy that people felt towards losing a store like Toys “R” Us. I think it brought about an emotional response that resulted in parents buying more toys overall.”
The strongest growth driver in the first half came from toys priced $5 to $19.99, led by L.O.L. Surprise!, Total Marvel, Fingerlings, Hatchimals, and Soft N Slo Squishes.
Looking ahead, Lennett predicted that the toy retail space will continue to bustle with activity through the end of 2018.
“Existing toy retailers have announced they will be dedicating more space and will carry more toys this holiday season both in-store and online,” she said. “We’re also seeing new store formats emerge that are more experiential, and we will have new toy retailers entering the space. The industry has shown to be proactive in compensating for the dollars Toys “R” Us has left on the table, and more.”