According to The NPD Group, which has recently merged with Information Resources, consumers are returning to specialist retailers and indie stores to shop for toys.
The latest Consumer 360 Toys analysis shows that specialist retailers such as The Entertainer, Smyths and Hamleys and indie toy stores are now the fastest growing retail channel for purchasing toys.
Analysis shows that while the share of toys sold online remains higher than pre-Covid levels, purchases via the internet have declined by 20% this year. In comparison, in-store buying has increased by 9%. NPD’s ‘toy specialists’ sales channel is now the joint largest channel along with online-only retailers, accounting for 30% of all toy sales by value so far this year (year-to-date June 2022). Sales value has grown every month compared to the same period a year ago.
Melissa Symonds, executive director, UK Toys, commented: “It’s great to see people returning to physical toy stores and especially to the toy specialists who are the experts in the category. There is nothing like the experience of seeing, hearing, and touching toys making it a fun shopping outing to visit a store and see what’s new in this highly innovative category.
“These retailers also have a wide choice offering shoppers the chance to discover something new and exciting along with the expertise of staff who spend all day among toys.”
Parents account for almost half (47%) of all toy purchases in the last 12 months, that same share as the previous year. They have been driving the return to shops, purchasing 55% of their toys in bricks and mortar stores, up 8%. There has, however, been a decline in the share of toys purchased by grandparents – down 18% – and other family members – down 5% – as inflation and concerns about rising bills hit budgets and spending.
Melissa continued: “With a squeeze in our household incomes reducing spending power, many consumers will be counting every penny. In previous recessions, we’ve seen that although parents continue to find the funds for the toys their children really want for Christmas and birthdays, other relatives such as grandparents cut back on their spending on toys.
“We’re already recording this trend in 2022 and would expect it to last well into the festive season. Toys retailers and manufacturers have experienced these circumstances before and will be planning how they respond in the run-up to the festive period.”
