The NPD Group has reported a surprising 13 per cent rise in toy sales in the US for the first 14 weeks of 2018.
Despite concerns surrounding the demise of Toys R Us, consumers have spent more money on buying toys during what has been described as ‘the most turbulent period in living memory in the toy business.’
However, some of that growth has come from price discounted or liquidated stock in Toys R Us, which as reported elsewhere, is stock which is unlikely to be fully paid to the detriment of toy companies.
According to new data from the market research firm The NPD Group, US toy sales grew by two per cent in the first 10 weeks of 2018, on par with the same period in 2017.
NPD data shows that US toy sales between March 11 and April 7 grew by 36 per cent compared to the same period in 2017, contributing to the 13 per cent year to date growth for the first 14 weeks of 2018.
Toy sales generally experience a bump in the two weeks leading up to Easter, and after splitting out Easter trading, NPD determined that approximately $180 million more was generated between March 11 and April 7 this year, attributed to the liquidation of Toys R Us.
The fastest-growing categories in the first 14 weeks of 2018 include Youth Electronics, led by WowWee’s Fingerlings, Dolls, led by MGA Entertainment’s LOL Surprise and All Other Toys.
“The Toys R Us bankruptcy has brought an incremental sales opportunity to the toy industry, and with at least a month to go until it wraps up, there is still more to come,” said Julie Lennett, SVP and toys industry advisor for The NPD Group.