Abstract
Toy retailing revolves around selling a fun product in a highly competitive marketplace. The stores should be vibrant and exciting, but the majority of the market are competing on price and becoming increasingly commoditised.
The market is geared up for the ten weeks before Christmas when it delivers over half of its sales, thus stock management, having the right product at the right price and appealing to the customer is even more crucial.
Key report themes:
- How do retailers cope with the reliance on Christmas, including the problem of shortages of bestsellers at key times? What can be done to reduce the seasonality of the market?
The toy retailing dynamics are changing: the growing importance of the internet for toys and games; consolidation among fewer, larger retailers; growing competition from the supermarkets as they expand their non-food offers; and the introduction of new retail formats (eg Build-A-Bear). Are these changes increasing or decreasing the appeal to the consumer?
- What can retailers do to increase their appeal? How can they encourage more visits to their stores away from the Christmas period?
- Can toy retailers broaden their consumer base by targeting toys and games more at adults - appealing to the ‘inner child' and enabling adults to take a break from being grown-up?
- Pricing promotions are rife during the Christmas period, with three-for-two offerings and discount days common, but is this increasing sales or just reducing margins? Are consumers hanging on until the last minute to get the best deal or is getting the right toy more important?
- Will toy retailing be insulated from the credit crunch?
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