Tin hats on for a tough 2009

According to the British Retail Consortium, conditions are tough for consumers and retailers at the moment and predictions are for a challenging 2009. Ronnie Dungan reports...
Author:
Publish date:
Social count:
0
5_MUSIC & MOTION CHOO CHOO.jpg

The BRC’s latest Retail Sales Monitor shows like-for-like sales have now fallen in seven of the last eight months. Eighty-five per cent of consumers believe they are feeling the impact of the recession and are reining in their spending.

Whilst the half-term week didn’t provide an accurate indication of market performance for the remainder of the year, as is generally the case, the toy market came out of year-to-date October 2008 registering no growth over YTD October 2007 sales. And while the market remained flat in value, in units, however, it has seen a five per cent growth over last year’s figures.

This increase in units sold comes as average prices have dropped five per cent for the year-to-date October 2008, to a low of £6.11 at the beginning of the festive period. As at year-to-date October, retailers cashed in a total of £995 million, with November likely to take the sales over the £1billion mark (NPD Epos YTD Data 2008).

With the grey economic skies looming above, it seems inevitable that the recession will take its toll on the toy business. The YTD was flat in sales, and October declined four per cent, but all the same six super categories grew in sales compared to last year, which is helping to drive the toy business forward.

The biggest growth still lies with building sets, which is up 21 per cent for the year to October. This is followed by plush and vehicles, amongst others. Building sets, driven by the whole Lego Star Wars Range, is not the only category to be benefiting from the growth of the Star Wars licence. Action figures and accessories has also found success with the licence – and with the increasingly popular Ben 10.

Infant/ Preschool is showing signs of growth driven by the strong performance of the In The Night Garden property, as well as Peppa Pig, which has conquered the hearts of the young children.

On the properties front, sales have been led by the boys characters, whilst the girls sales are being upheld by In The Night Garden and High School Musical, both strong in the Top Ten licences list. Dora the Explorer has also shown determination in these tough times, with registered growth in the Infant/Preschool as well as the dolls category.

It is with great anticipation that retailers and manufacturers, likewise, await the outcome of the final weeks trading up to Christmas. With the Government’s drop in VAT, plus retailers’ promotional activity to encourage consumers into stores, it is hoped that consumers will eventually come out to spend their money. As we head into December, hopefully the Christmas spirit will help turn things around.

Related

5_buzz-web-184pxl.jpg

2009 is banner year for Lego

Marketing its way out of any demand problems has seen Lego have a banner year, with UK sales exceeding its expectations. Demand continues to outstrip supply in certain quarters and next year?s range points to more success. Ronnie Dungan spoke to UK MD Marko Ilincic about how 2009 fitted together?

5_mypictr_200x225.jpg

Nuremberg 2009

Nuremberg Toy Fair promises to be bigger than ever this year and ToyNews has put together your essential guide to the increasingly popular event. We feature the exhibitors, brands and products you won't want to miss, plus we give you an early preview of what will cause a stir...

5_PowerRanger-Bandia.jpg

Snow joke for toy sales

Retail sales fell 1.8 per cent in February according to the British Retail Consortium showing the January rise in sales as a short term blip rather than an ongoing trend.

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.