Toy retailers face a tough marketplace due to rising competition.
London, UK (PRWEB) April 30, 2013
Over the past five years, the Toy Retailers industry has been influenced by increasing competition, fluctuations in the level of disposable incomes, consumer confidence and trends in the proportion of the UK population aged 14 or under. Industry revenue is expected to rise marginally to £1.46 billion over the five years through 2013-14, at a compound annual rate of 0.4%. Revenue is estimated to contract by 0.8% in the current year, but this figure is still an improvement on the figures for the previous three years.
According to IBISWorld industry analyst Andrew Johnson, “The industry is subject to competition from a range of external players including department stores, supermarkets, pound shops and online retailers." UK consumers have rapidly embraced the convenience and lower prices that internet stores offer. Department stores, supermarkets and pound shops have buying power that has enabled them to compete fiercely for toy sales on price. In 2009-10, the industry benefited from the closure of Woolworths, which had been one of the main price-setting competitors in the UK Toy Retailers industry. Changes in consumer preferences have also played a part in industry performance. Toys aimed at the younger section of the market have done relatively well, thanks to the growing number of children under 14 in the United Kingdom. However, older children now have far more entertainment alternatives to traditional toys, which they are actively taking up. This has reduced the amount of revenue that can be generated by targeting this section of the market.
Toy retailers will continue to face difficult trading conditions over the five years through 2018-19, but industry revenue is still forecast to increase marginally. Johnson adds, “Online retailers and technological developments are expected to shape competition for industry operators in the coming years." This competition will mainly affect retailers of mass-market toys. Independent retailers are expected to move into niche areas, where demand for traditional toys will remain relatively robust.
The UK Toy Retailers industry has a medium level of market share concentration with the top four players in the market are estimated to have a 56% share of industry revenue. The level of concentration in the industry has been declining, as the largest players have lost a significant amount of revenue to external competitors, such as supermarkets, department stores and online retailers.
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
Firms in this industry retail toys in physical stores. Businesses that concentrate on selling video game consoles and software and businesses that sell toys 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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