London, United Kingdom (PRWEB) September 22, 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 0.1% over the five years through 2012-13. Industry sales are forecast to decline by 4.1% to £1.34 billion over 2012-13. Despite growth in consumer confidence and a weak rise in disposable incomes, retail demand for toys will continue to be affected by the fragile state of the UK economy and intense competition across the industry. Burgio-Ficca adds, “retail demand will also suffer due to mounting external competition from other avenues, such as online operators, department stores, multiple shops and variety stores”.
Toy retailers will experience tough trading conditions over the next five years, 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.
In 2012-13, key players in the Toy Retailers industry are expected to account for 42.0% of the market, providing the industry with a medium level of market share concentration. Along with mounting competition, concentration has been affected by the challenging trading environment presented by the UK economy. Following the financial crisis, UK businesses have experienced softer retail demand as a result of falling disposable income and weaker consumer sentiment. These factors have led to a decline in relative share of sales generated by key industry players, which has effectively reduced their overall share of the market and the concentration level of the industry.
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
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