Page 29 - Toy & Hobby Retailer Magazine May-July 2019

BTHA RETAILER AND TOY OF THE YEAR AWARDS
• Overall Toy Retailer of the Year - The Entertainer
• Supplier of the Year - Character Options
• Independent Toy Retailer of the Year -
Banba Toymaster
• Specialist Multiple Toy Retailer of the Year
- East Midland Toy Company
• Specialist Multiple Toy Retailer of the Year
(30+ stores) - The Entertainer
• OnlineToyRetaileroftheYear-ShopDirect
• General Multiple Toy Retailer of the Year -
Sainsburys Argos
• Department Store of the Year - W J Daniel
and Co., Windsor
• Toy of the Year - Lol Surprise, MGA
Entertainment
• Action Toy of the Year - Roblox, Jazwares
• Collectable Range of the Year - Lol Under
Wraps, MGA Entertainment
• Craze of the Year - Soft 'n Slo Squishies,
Character Options
• Doll of the Year - Poopsie Surprise
Unicorn, MGA Entertainment
• Fashion Doll of the Year - Barbie Care
Clinic, Mattel
• Game of the Year - Jumanji, Spin Master
• Licensed Product Range of the Year -
Harry Potter, Lego
• Outdoor Toy of the Year - Super Wubble
Bubble Ball, Vivid Imaginations
• Plush Toy of the Year - Scruff-a-Luvs,
Worlds Apart
• Pre-School Range of the Year - Paw Patrol,
Spin Master
Toy of the Year - Lol Surprise.
Overall Toy Retailer of the Year - The Entertainer.
There were undoubtedly some stand-out retail performances: online giant, Shop Direct, enjoyed a very strong Christmas, as did Smyths and B&M. And let’s not forget specialist independent retail chain The Entertainer, which delivered a stellar festive performance of its own; in the five weeks leading up to 29 December, the retailer posted a substantial 22.4 per cent increase in total sales.
Each of these retailers has a different strategy and approach, but each has carved its own niche in the market and plays to its core strengths. One of the keys to success in the current
retail landscape is to know what you do best, recognise where you fit in the grand scheme of things, understand your customer and deliver the best possible experience for them.
MAIN: The show floor of the 2019 London Toy Fair.
late for toy retailers in 2018, with weeks 51 and 52 representing over eight per cent of the annual total toy sales. Sales of licensed toys declined for the fourth
year in a row: they represented 23.3 per cent of the market in 2018, compared to 29 per cent in 2015. Nevertheless, 2019 has the potential for significant growth in sales of licensed merchandise, thanks to a stellar line up of movie releases including Frozen II and Toy Story 4.
Perhaps the most troubling retail performance in 2018 was that of Argos,
which was acquired by grocery retailer Sainsbury’s back in 2016. Last year saw an attempt to merge the two separate organisations, as well as the closure of many stand-alone Argos stores, as Sainsbury’s attempted to boost shareholder value by implementing cost-saving measures. The resulting 10 per cent drop in toy sales for Argos was a significant concern for many UK toy suppliers; while it remains the UK’s largest retailer of toys for now, that level
of sales decline has set alarm bells ringing in certain quarters.
Moreover, the fact that the Argos brand
was seen as being marginalised in-store has caused many toy suppliers to question whether Argos was right to shut stand-alone stores and subsume the brand into Sainsbury’s superstores.
As is tradition, the first night of Toy Fair
saw the 2018 Toy Industry Awards take place. MGA Entertainment was
unsurprisingly the evening’s
big winner, taking home
Collectible Range of the Year
and Toy of the Year for Lol
Surprise. The brand enjoyed
a phenomenal year, accruing salesof£100m–ifitwasa
stand-alone company, this incredible performance would have made it the third largest UK toy company in 2018.
Despite the decline in sales last year, the UK remains the largest market in Europe and the fourth largest globally. Online sales increased by eight per cent, representing 34 per cent of all toy sales. The grocery channel declined significantly, while specialists increased sales by six per cent and the discount channel increased by 10 per cent. The fact that toy specialist retailers performed well in the UK was a positive boost to a struggling high street, perhaps reflecting consumer appreciation of the theatre created by toy shops, bringing the magic and wonder of toys alive for children.
Inevitably, Christmas remains a pivotal period for the UK toy market, representing 47 per cent of toys sold in 2018. Christmas came particularly
“One of the keys to success is to know what you do best and understand your customer.”
The situation was further complicated by last year’s announcement that Sainsbury’s intended to acquire rival supermarket chain Asda.
The integration of the Sainsbury’s and Argos businesses had resulted in such short-term disarray that suppliers are worried about the addition of a third retail operation into the mix. However, that concern may no longer be valid, after the Sainsbury’s-Asda merger was dealt a blow by the Competition & Market Authority report into the deal. In truth, this would come as a relief to many toy suppliers. Given the current subdued retail climate, driven largely by uncertainty surrounding Brexit, the last thing the UK toy community needs right now is further complications at its largest account.
The London Toy Fair will return in 2020, from 21-23 January. ❉
MAY/ JUNE 2019 TOY & HOBBY RETAILER 29