Toy retailers face a tough marketplace due to rising competition
London, United Kingdom (PRWEB) May 27, 2012
Toy retailing has been a crowded industry over the past five years. According to IBISWorld industry analyst Claudia Burgio-Ficca, “intense pressure from external players has led to significant price-based competition across the industry and created a challenging marketplace for 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. The resulting effect is expected to be an annualised decline in industry sales of 1.1% over the five years through 2012-13. The industry is subject to competition from a range of external players including department stores, variety stores and online retailers. As a result, there has been a notable decline in the number of independent stores and a fall in the market share held by specialist toy retailers.
Burgio-Ficca adds, “toy retailers will experience tough trading conditions over the next five years to 2017-18, with industry sales forecast to increase only marginally”. The trading landscape across the UK economy is expected to remain weak due to the roll-out of the British government's austerity programme. Fuelled by rising taxes, cuts to social benefits and budget cuts across a range of government departments, the austerity measures are expected to bring the country's debt burden under control. Industry sales will also be affected by continued strong competition from external players, which will seek a larger share of the market.
The Toy Retailers industry has a medium level of market share concentration. Industry concentration will continue to be subject to mounting price-based competition over the five years through 2017-18, particularly from larger external players such as department stores and variety stores. Growth in the volume of online shopping will also result in more consumers turning to the internet for their toy and game needs. Major companies include Toys ‘R’ Us, Early Learning Centre, The Entertainer and Hamleys.
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
Retailers in this industry sell games and toys to the general public. Businesses that primarily sell video game consoles and software are excluded from 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
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.