Opinion


How independent toy retailers can flourish in the post-pandemic market


Tapping into consumers' community spirit and desire to shop locally is key if bricks-and-mortar stores want to compete with the online giants, says Lee Nathan of independent business directory Shopli


I believe the way we shop has changed for good, and arguably for the better. UK consumers are now more focused on their local communities, sustainability and supporting independent businesses, and this trend is set to continue to grow in 2022. A recent Retail Trends survey


from Deloitte highlighted this change in behaviour, with the


data revealing that 59 per cent of consumers in the UK are spending more with independent businesses since the start of the pandemic, and remain committed to supporting their local communities and the businesses that make it. 2021 was certainly tough for retail, with Covid-19


still having a huge impact, online behemoths gaining market share and many brands disappearing from the high street altogether. However, as the world reopens, there's an opportunity for independent businesses to capitalise on consumers’ desire to support and shop in their local communities. The retail toy sector has certainly been impacted by


the ever-changing retail landscape over the past few years, with the largest retailer in this space, Toys R Us, going into administration in 2018 (although it’s set to make a return to the UK later this year). However, toy sales increased by 1 per cent this Christmas to £1.7 billion compared with the previous year, and a large majority of this growth was driven by physical stores, with sales up by 16 per cent, while online


sales declined by 11 per cent as consumers headed back to the high streets en masse to support bricks-and-mortar retailers. Smyths, Amazon and Argos are still big players in the


toy space, especially online, but in the 12-week run-up to Christmas, 53 per cent of toy sales were in-store, meaning there's significant room for growth for bricks- and-mortar shops. It’s clear that, going forwards, toy shoppers are going to swap between online and in-store shopping, depending on their specific needs. I believe independent retailers need to put themselves in a position to offer both solutions, in order to ensure they keep consumers focused on supporting their local communities and not simply opting for the ease of Amazon or other purely online offerings. One statistic from last year’s Christmas shopping data was a huge increase in creative and learning toys; arts and crafts products also proved popular. These are all products that we know consumers prefer buying in-store. It’s important for shop owners to be aware of and react to these trends. Customers are keen to shop close to home – it benefits the local economy, and the planet – and there are multiple ways for retailers to engage with them. Utilising social media is paramount, as is making use of apps such as Shopli, which helps shoppers to discover local independent businesses and allows small businesses to connect with, and sell to, a national audience. Hosting events, running competitions and next-level customer service will all draw in the crowds. If independent retailers offer the right combination of fantastic in-store experience and an easy-to-use online offering, 2022 could certainly be a good year.


“It’s clear that, going forwards, toy shoppers are going to swap between online and in-store shopping, depending on their specific needs”


Bristol-based entrepreneur Lee Nathan has an unrivalled understanding of the challenges facing small businesses. He is CEO of Shopli (www.shopli.co.uk), the number-one directory for independent businesses in the UK, and South West Regional Chairman of the Federation of Small Businesses.


Spring/Summer 2022 | ToyNews | 11


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