What you need to know
After several years of growth, the toy market declined in 2018 with sales dropping 4.3% to £3.3 billion. The decline in sales can largely be attributed to the collapse of one of the largest toy retailers in the UK, Toys R Us. Prior to its demise, Toys R Us was the third-largest toy retailer in the market in value terms, with 12% of the market in 2017, bringing in revenues of over £400 million according to Mintel estimates. Additionally, Argos, which was the largest toy retailer, had a bad 2018, including a poor Christmas period. Argos and Sainsbury’s combined toy sales are estimated to be down almost 5% in 2018, which it has blamed on stock and operational issues due to going through a transitional period post Sainsbury’s buyout of Argos.
However, it is not all bad news. Amazon has seen its share grow dramatically over the past few years, and is now the third-largest retailer in the toy market as well as being the most popular retailer to purchase toys from, with one in five (43%) admitting to doing so in the last year. Smyths and The Entertainer have also done very well, with Smyths overtaking Argos as the number one toy retailer, and The Entertainer continuing to open up more stores and find new ways to innovate.
The toy of the year for 2018 was the L.O.L. Surprise! collection. The toy truly captivated children everywhere by capitalising on the trend for collectibles, which has in turn been driven by an increase in the number of YouTube channels dedicated to toy unboxing. Slime continued to do well, while squishies were another surprise of the year, with some retailers such as The Works even crediting their successful year to the toy.
We have yet to see what 2019 will bring, but many are hoping that the many Disney films released this year, as well as the new Fortnite toys that are based on the popular computer game, will give the market a new lease of life.
Products covered in this Report
For the purposes of this Report, Mintel has used the following definitions:
This Report defines toys and games as specifically children’s toys that are supplied by specialist companies and sold through independent or multiple toyshops, toy departments in department/variety stores, grocery multiples and catalogue showrooms.
In such a diverse market, there is inevitably some blurring of the definition in some categories such as in the arts and crafts sector, for example. In this instance, general stationery and artists’ materials are excluded, and only colouring sets and painting materials solely aimed at children are included. We exclude Christmas decorations, fireworks and party stationery. For details on the nursery market see Mintel’s Nursery and Baby Equipment – UK, February 2018 Report.
Video games and consoles, laptops and tablet computers are also excluded from this Report but children’s electronic toys such as VTech toys are included. For details on the market for video games and consoles see Mintel’s Video Games and Consoles – UK, August 2018 Report.
The market for toys includes bicycles for children. There is more information on the market for bicycles in Mintel’s Cycling – UK, March 2019 Report.
