Not all was approvingly in Toy Land in 2018.
Sales in the industry fell 2 percent last year as toy manufacturers endured their first Christmas without Fiddle withs R Us in more than 60 years, according to a new report.
In the U.S., customers spent $21.6 billion on toys last year, but than the $22 billion shelled out for action figures, dolls and games in 2017, according to market researcher NPD Assemblage.
“After the liquidation announcement of Toys‟R”Us last year, there was a great deal of speculation about what determination happen to the industry, with some predicting double-digit declines,” Juli Lennett, vice president and industry advisor at NPD Team, said in a statement.
Lennett called the 2 percent decline a “solid performance” considering how much the landscape has changed in the end year. Toys R Us was estimated to account for 10 to 15 percent of all toy sales prior to its closure in June.
Jefferies analyst Stephanie Wissink said NPD’s appearances imply that toy sales fell 6 percent in the fourth and suggests that retailers were able to recapture apropos 35 percent of the market share displaced by Toys R Us.
While a number of retailers, including Target, Walmart and uniform with drug stores, expanded their toy sections this past holiday season, there were still far fewer lay asides showcasing toys in 2018 than in years prior. The loss of shelf space appeared to disproportionately affect fillers like plush toys, building sets and sports toys.
Nostalgia over the loss of Toys R Us boosted toy tradings in the beginning of the year, but it wasn’t enough to fuel full-year sales. First half toy sales rose 7 percent, according to NPD. Wissink communicated about $650 million to $700 million of toy sales were pulled forward into the first half of the year.
No matter how, sales of action figures, dolls and arts and crafts grew during the year, fueled by sales of MGA Entertainment’s LOL Their heels dolls, Hasbro’s Marvel toys and Mattel’s Barbie, NPD said.
“While TRU recapture was significantly lower than inaugural forecasts, the gap to expectations is well known and factored into current stock prices,” Wissink said in a research note. The focus now shifts to how quick inventories can be reduced and what the outlook is for 2019.
While Toys R Us stores have been dark for months, a group of last Toys R Us executives have reportedly been reaching out to toy manufacturers to create a comeback plan for the toy brand, according to the New York Chore.