Author: Mintel Group Ltd.
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Toy Retailing - UK - March 2014

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Consumer spending on toys and games, 2008-18
Market factors
More children but fewer families
Stronger economy
More convenient internet connections
Kids use home technology to play
44% buy toys for Christmas
Companies, brands and innovation
Figure 2: Share of toys and games, by type of retailer, 2009 and 2013
The consumer
Where they buy toys
Figure 3: Where people buy toys, in-store and online, December 2013
Attitudes to shopping for toys
Figure 4: Attitudes towards toy shopping, December 2013
What would encourage them to buy from a shop?
Figure 5: Factors that would encourage people to shop for toys in-store, December 2013
What they think about toys and games
Figure 6: Attitudes towards toys and games, December 2013
Figure 7: Target groups for toys and games retailers, December 2013
What we think
ISSUES AND INSIGHTS
How can retailers escape the discounting trap?
The facts
The implications
Is there a future for specialist toy shops?
The facts
The implications
Will online retailing engulf toys?
The facts
The implications
Do people still value conventional toys and games?
The facts
The implications
TREND APPLICATION
Trend: Never Say Die
Trend: Extend my Brand
Mintel futures: Generation Next
INTERNAL MARKET ENVIRONMENT
Key points
Family spending on toys and games
Figure 8: Changes in family spending habits on toys/games (including video games) for child (ren), June 2013
Figure 9: Changes in family spending habits on toys/games (including video games) for child(ren), by financial situation, June 2013
Toys as Christmas presents
Figure 10: People who bought toys as gifts for Christmas 2013, by financial situation, January 2014
Figure 11: Toys and games bought as gifts for Christmas 2013, by age and age of children, January 2014
Children using home technology
Figure 12: Technology that children use in their homes, September 2013
What families do together
Figure 13: Family lifestyles, June 2013
BROADER MARKET ENVIRONMENT
Key points
Children in the population
Figure 14: Number of children in the UK aged up to 14, by age band, 2008-18
Shifting lifestages
Figure 15: Forecast adult population trends, by lifestage, 2008-18
ABs remain the largest socio-economic group
Figure 16: Forecast adult population trends, by socio-economic group, 2008-18
Personal disposable income will grow
Seven in 10 now own a smartphone
Figure 17: Personal ownership of mobile phones, January 2012-September 2013
Connected and mobile
Figure 18: Household ownership of portable computers, January 2012-September 2013
COMPETITIVE CONTEXT
Key points
Figure 19: Consumer spend on toys and games in context, 2009-13
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Bentalls invests in creative activities and fun
Ceremony at Disney
Create your own toy
Smyths has a new take on click-and-collect
Gender stereotypes eliminated?
Supermarkets expand own-brand goods
Serving little people
Industry tackles body image
Figure 20: Make time to Play, Logo, February 2014
Selfridges opens a dedicated toy store
Figure 21: Selfridges, branded display and play table, August 2013
MARKET SIZE AND FORECAST
Key points
Consumer spend on toys and games
Figure 22: Consumer spend on toys and games, 2008-18
Figure 23: Consumer spend on toys and games, 2009-13
CHANNELS TO MARKET
Key points
Channels to market
Figure 24: Share of toys and games, by type of retailer, 2009 and 2013
Figure 25: Share of traditional toys and games, by type of retailer, by value, 2009-13
Argos retains number one position
Amazon marches on
Supermarkets edge ahead
Specialists highly relevant
Impressive performance for Smyths and The Entertainer
Potential for Early Learning Centre to claw back
Other specialists generate excitement
Department stores invest
Discounters pick up momentum
SPACE ALLOCATION SUMMARY
Key points
Space allocations
Figure 26: Toy retailers, summary space allocation, February 2014
Toys R Us incorporates nursery goods
Smyths allocates more space to tech
Engaging displays at Toys R Us
Figure 27: Dolls display, Toys R Us, Brent Cross, February 2014
Smyths carries large ranges of outdoor
Figure 28: Bicycles display, Smyths Toys, Friern Barnet, February 2014
The Entertainer caters well for a range of ages
Figure 29: Pre-school toys display, The Entertainer, Westfield Shopping Centre, Stratford, February 2014
Argos bias to ‘big’ toys
Less than 2% space in grocery superstores
Figure 30: Soft toys and dolls display, Asda Superstore, Watford, February 2014
John Lewis focuses on creative play, board games and construction
Figure 31: Games and puzzles display, John Lewis, Westfield Stratford, February 2014
Detailed space allocation
Figure 32: Toy retailers: Detailed space allocation, February 2014
RETAILER PROFILES
 TOY SPECIALISTS
Toys R Us
Figure 33: Toys R Us, space allocation, February 2014
Figure 34: Toys R Us, UK sales, 2009-13
Figure 35: Toys R Us, financial performance, 2010-13
The Entertainer
Figure 36: The Entertainer, space allocation, February 2014
Figure 37: The Entertainer (Amersham), UK sales, 2009-13
Figure 38: The Entertainer, financial performance, 2010-13
Early Learning Centre
Figure 39: Early Learning Centre, UK sales, 2011-13
Figure 40: The Early Learning Centre, financial performance, 2010/11-2012/13
Smyths Toys
Figure 41: Smyths Toys, space allocation, February 2014
Figure 42: Smyths Toys sales, 2009-12
Figure 43: Smyths Toys, financial performance, 2009/10-2012/13
 MONO-BRAND TOY STORES
Disney Stores
Figure 44: Disney Stores, financial performance, 2009-12
LEGO Stores
Build-A-Bear Workshop
Figure 45: Build-A-Bear Workshop, (The Bear Factory Ltd), UK financial performance, 2009-12
 SMALLER TOY SPECIALISTS
Games Workshop
Figure 46: Games Workshop (UK), financial performance, 2011-13
Hamleys
Figure 47: Hamleys financial performance, 2010-12
 GENERALIST RETAILERS WITH TOYS
Argos
Figure 48: Argos, total turnover, year to February, 2009-13
 SUPERMARKETS
Figure 49: Non-grocery items bought from grocery retailers, September 2013
Tesco
Figure 50: space allocation, Tesco Extra, February 2013
Asda
Figure 51: space allocation, Asda, February 2013
Sainsbury’s
 DEPARTMENT STORES
Figure 52: space allocation, John Lewis, February 2013
 GENERAL VALUE MIXED GOODS RETAILERS
Figure 53: Selected value mixed goods retailers, turnover, 2008-12
BHS
Other retailers
 HOME SHOPPING
Amazon
eBay
Shop Direct
BRAND COMMUNICATION AND PROMOTION
Key points
Main media advertising
Figure 54: Main media advertising, toys, all advertisers, 2009-13
Figure 55: Main media advertising, toyshops, by media type, 2009-13
Two retailers dominate
Figure 56: Main media advertising, toyshops, 2009-13
Smyths moves into top spot
Toys R Us cuts back
Early Learning slashes advertising
Non-specialist advertisers
Argos continues to promote toys
Asda’s half-price brands
THE CONSUMER – WHERE PEOPLE BUY TOYS
Key points
Retailers used for purchasing toys
Figure 57: Where people buy toys, any used, December 2013
General retailers stand out
Toy specialists popular with ABs
High-income households shopping at Early Learning
Shopping in-store and online
Figure 58: Where people buy toys, in-store and online, December 2013
How many outlets do they use?
Figure 59: Repertoire of outlets used for toys, December 2013
Figure 60: Repertoire of outlets used for toys, in-store and online, December 2013
THE CONSUMER – ATTITUDES TOWARDS TOY SHOPPING
Key points
Attitudes towards toy shopping
Figure 61: Attitudes towards toy shopping, December 2013
Special occasions matter
Online is more convenient
Special offers most relevant for younger children
People plan ahead
Party gifts
Impulse buying
Browsing in-store but buying online
The influence of the child
Gift vouchers popular
Who shops with the child?
THE CONSUMER – WHAT WOULD ENCOURAGE PEOPLE TO SHOP FOR TOYS IN-STORE?
Key points
What would encourage people to shop for toys in-store?
Figure 62: Factors that would encourage people to shop for toys in-store, December 2013
Loyalty schemes please
Older profile for catalogues
Click-and-collect
Ordered by price
Try the toys
Brands not available elsewhere
Activities please
Bestsellers
The ideal store?
THE CONSUMER – ATTITUDES TOWARDS TOYS AND GAMES
Key points
Attitudes towards toys and games
Figure 63: Attitudes towards toys and games, December 2013
Attitudes towards toys and games
Figure 64: Attitudes towards toys and games, December 2013
Women most likely to disagree that girls and boys should play with different kinds of toys
Older people least enthusiastic about advertised toys
Over-65s least influenced by pester power
People with no children in the household take least notice of size
Target groups for toy retailers
Figure 65: Target groups for toys and games retailers, December 2013
Family-centred (27%)
Figure 66: Attitudes towards toys, Family-centred target group, December 2013
Figure 67: Factors that would encourage people to shop for toys in-store, Family-centred target group, December 2013
Character toys (24%)
Figure 68: Attitudes towards toys, Character toys target group, December 2013
Figure 69: Factors that would encourage people to shop for toys in-store, Character toys target group, December 2013
Disengaged (20%)
Figure 70: Attitudes towards toys, Disengaged target group, December 2013
Figure 71: Factors that would encourage people to shop for toys in-store, Disengaged target group, December 2013
Traditional values (29%)
Figure 72: Where they shop for toys, Traditional values target group, December 2013
Figure 73: Attitudes towards toys, Traditional values target group, December 2013
Figure 74: Factors that would encourage people to shop for toys in-store, Traditional values target group, December 2013
APPENDIX – BROADER MARKET ENVIRONMENT
Figure 75: GDP, PDI, consumer expenditure and savings, at current prices, 2008-18
APPENDIX – THE CONSUMER – WHERE PEOPLE BUY TOYS
Figure 76: Most popular where people buy toys – Any used, by demographics, December 2013
Figure 77: Next most popular where people buy toys – Any used, by demographics, December 2013
Figure 78: Other where people buy toys – Any used, by demographics, December 2013
Figure 79: Most popular where people buy toys – Bought in-store, by demographics, December 2013
Figure 80: Next most popular where people buy toys – Bought in-store, by demographics, December 2013
Figure 81: Other where people buy toys – Bought in-store, by demographics, December 2013
Figure 82: Most popular where people buy toys – Bought online, by demographics, December 2013
Figure 83: Next most popular where people buy toys – Bought online, by demographics, December 2013
Figure 84: Other where people buy toys – Bought online, by demographics, December 2013
Repertoire for all shoppers
Figure 85: Repertoire of where people buy toys, by demographics, December 2013
Repertoire for in-store
Figure 86: Repertoire of where people buy toys in-store, by demographics, December 2013
Repertoire for online
Figure 87: Repertoire of where people buy toys online, by demographics, December 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS TOY SHOPPING
Figure 88: Most popular attitudes towards shopping for toys, by demographics, December 2013
Figure 89: Next most popular attitudes towards shopping for toys, by demographics, December 2013
APPENDIX – THE CONSUMER – WHAT WOULD ENCOURAGE THEM TO SHOP IN-STORE?
Figure 90: Most popular factors that would encourage people to shop for toys in-store, by demographics, December 2013
Figure 91: Next most popular factors that would encourage people to shop for toys in-store, by demographics, December 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS TOYS AND GAMES
Figure 92: Agreement with the statement ‘It’s important to me that children learn from their toys/games’, by demographics, December 2013
Figure 93: Agreement with the statement ‘Toy sets that can be added to later appeal to me’, by demographics, December 2013
Figure 94: Agreement with the statement ‘It’s important for families to play games together’, by demographics, December 2013
Figure 95: Agreement with the statement ‘Traditional toys/games make the best gifts for children’, by demographics, December 2013
Figure 96: Agreement with the statement ‘I prefer to choose toys/games that do not occupy too much space’, by demographics, December 2013
Figure 97: Agreement with the statement ‘Girls and boys should play with different kinds of toys’, by demographics, December 2013
Figure 98: Agreement with the statement ‘It is worth paying more for high-quality toys’, by demographics, December 2013
Figure 99: Agreement with the statement ‘I trust the safety of toys from well-known brands’, by demographics, December 2013
Figure 100: Agreement with the statement ‘I would prefer to buy toys/games that children recognise from adverts on television’, by demographics, December 2013
Figure 101: Agreement with the statement ‘It is difficult to ignore a child’s request for toys’, by demographics, December 2013
Figure 102: Agreement with the statement ‘Children prefer toys that are based on film or television characters’, by demographics, December 2013
Target groups
Figure 103: Target groups, by demographics, December 2013

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