Sales of toys and games rose to £1.7 billion in 2000, an increase in value of 6.7% on the preceding year- Is the industry heavily reliant on hit toys?

With 55-60% of all toys sales taking place in the last quarter of the year - is the purchasing of toys strongly affected by seasonal factors?

Can retailers maintain the significant growth the industry experienced in 2000?

Mintel last covered toy retailing in Toy Retailing, Retail Intelligence, April 1999, and, during the review period, the market had remained fairly static. In 2000, the industry saw sales increase by a significant 6.7%, largely due to a couple of hit toys - Pokémon and micro-scooters. Whether this growth will continue in 2001 and beyond is the challenge facing the industry in a year in which, thus far, there has been no big hit toy or game. With two new films - Harry Potter and the Philosopher's Stone, and Lord of the Rings: The Fellowship of the Ring - due to be released before Christmas, growth predictions for 2001 suggest an increase of 3.1%.

This report examines the current trading conditions in UK toy retailing and comments on possible developments.

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