Toy retailers face a tough marketplace due to rising competition
London, United Kingdom (PRWEB) December 13, 2012
Toy retailing has been a crowded industry over the past five years. According to IBISWorld industry analyst Andrew Johnson, “intense pressure from external players such as department stores, supermarkets, variety stores and online retailers has led to significant price-based competition across the industry and created a challenging marketplace for toy retailers”. In addition to mounting competition, the toy retailing market has been affected by fluctuations in the level of real household disposable income, consumer confidence and trends in the overall share of the UK population aged 0 to 14 years. As a result, industry revenue is expected to decline at a compound annual rate of 1.8% over the five years through 2012-13, to £1.23 billion.
UK consumers have rapidly embraced the convenience and lower prices that internet stores offer. Department stores, supermarkets and variety stores have buying power that has enabled them to really compete for toy sales on price. Changes in consumer preferences have also played a part in industry performance. Toys for the youngest section of the market have been helped by an expanding number of children under 14 in the United Kingdom. However, older children have far more entertainment alternatives to traditional toys, which they are actively taking up with ever-younger kids regularly using the internet and owning smartphones. Johnson adds, “toy retailers will experience tough trading conditions over the next five years to 2017-18, with industry revenue forecast to increase only marginally”.
The UK Toy Retailers industry has a medium level of market share concentration with the top four players estimated to have 54.7% share of industry revenue in 2012-13. Major companies include Toys “R” Us, Early Learning Centre and The Entertainer.
For more information on the Toy Retailers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes retailers whose main activity is the retailing of toys in physical stores. Businesses that primarily sell video game consoles and software and businesses that sell toys mainly on the internet are not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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