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Toy sales of £400m expected before Christmas
The NPD Group predicts last-minute toy shopping could boost the UK market to post only a 2% decrease overall in 2012. With the last few shopping days before Christmas to go, the toy sector was holding its breath in anticipation of a final rush to the stores. Immune to the cut-backs in consumer spend until recently, sales of toys decreased by 6% in November and by 4% in the first week of December compared to the same time last year, according to latest research by The NPD Group. The UK is not the only market with disappointing sales figures this Christmas
season. The trend is mirrored elsewhere in Europe, with sales year-to-date to November 2012 down 14% in Spain, 8% in France and 3% in Italy. Germany is the only market to have seen a slight increase, posting a 1% growth in the same time frame. Frederique Tutt, toy expert at The NPD Group, explains: “In 2011 we saw the emergence of a new trend where consumers delayed their purchases until the last three weeks before Christmas in the hope of last-minute discounts. This meant that Christmas week was the biggest sales week of 2011 in terms of revenues, whereas previously sales were spread evenly over the last five weeks of the year. This behaviour means that the timing of Christmas this year, which falls on the last Tuesday of the month, impacts the all-important sales figures, as this year consumers have two more shopping days compared to 2011 to make their toy purchases.” Between this ‘wait for the discounts’ attitude and the calendar impact, The
NPD Group is expecting December 2012 to set a new sales record, where the last three weeks of the month might have reached £400m in sales. Frederique added: “In this environment, the timing of Christmas has a significant impact on the sales performance of the sector. Last year there was one additional trading day before Christmas – and on that one day, sales increased by more than £20m – more than enough to compensate for the
decrease at the start of December.” In terms of the best performing products so far, pre-school tablets remain popular for the second year running, as well as the highly anticipated return of Furby, despite the ‘sold out’ rumours.
Best Sellers 2012 (Week ending 2nd December in value)
1. Tiger Electronics Hasbro - Furby Hot & Cool Asst 2. LeapFrog - LeapPad Explorer Tablet 3. VTech - InnoTab Learning Tablet 4. LeapFrog - Leapster Explorer Game Asst 5. VTech - VTech Kidizoon Twist Digital 6. Vivid Imaginations - MM Moshling Figures Blister Pack 7. VTech - InnoTab Software Asst 8. Lego - City Great Vehicles 9. Zapf Creation - Baby Annabel Doll Interactive 10. Lego - Friends Collection 2012
Newsinbrief
The latest NPD monthly research report has revealed that LeapFrog is now the ninth biggest toy manufacturer by value of goods sold. The company has grown its total market share from 1.1% to 1.5% year on year in a toy market which is down 2% year on year.
Following the month-long auction featuring artworks created by fans of Sylvanian Families, Flair has reported that £1,037.50 has been raised for the Toy Trust. The Sylvanian Families Study in Art exhibition took place in London during October half term, followed by an online auction. Over 25 items were bought, with the highest-priced item reaching £300.
Great Gizmos is extending its portfolio as the new exclusive UK and Eire distributor of the eco-friendly wooden toy brand, Plan Toys. Effective from January 1st, Great Gizmos will have full distribution rights of the brand from Thailand and will showcase the collection at January’s London Toy Fair.
Customers at The Entertainer have given £250,000 via Pennies, the electronic charity box, for four children’s hospitals and other UK charities. Weekly totals jumped from an average of £2,000 to nearly £15,000 in the run-up to Christmas.
20 Toyworld
Arklu’s British fashion doll Lottie has sold out in Australia, with a waitlist of over 600 parents wanting their own Lottie in time for Christmas. Since its debut in August, Lottie has won nine awards in the USA and UK.
DKL Marketing teamed up with Northampton MP Michael Ellis and donated toys from across its brands to a school for children with special needs and disabilities.
DKL donated over 200 toys to the Fairfield School in Northampton, whilst
Michael Ellis, MP for Northampton North, dressed as Santa Claus to hand out the goodie bags to the Children. Kai Hawaleschka, MD of DKL, said: “As a company we take our corporate
social responsibility very seriously; it is a joy to see how our toys have really made a difference to these children, and we are happy we could work with Michael to accomplish this.” This is the second time DKL Marketing has worked with the school.
Hama Beads has reported that global sales have broken its sales records for November. DKL Marketing, the exclusive distributor of Hama Beads in UK and Ireland for over 20 years, has also reported growth in Hama Bead orders, with November being a record month in sales.
Retailer John Lewis has said it may be seeing the first signs of a backlash against companies consumers believe are trying to avoid tax. MD Andy Street has said sales at the firm’s online arm have risen since the controversy in November. Johnlewis. com’s major competitor is
Amazon.com, one of the companies targeted by campaigners.
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