Despite Autumn’s Arrival, the UK Toy Community is Still Waiting for Signs that Consumers’ Thoughts are Turning in Earnest to Christmas Shopping!
WRITTEN BY JOHN BAULCH — PUBLISHER OF TOY WORLD MAGAZINE
It’s no secret that September and October retail footfall was hampered by a combination of poor weather (including major floods in parts of the UK) and low consumer confidence, not entirely helped by murmurings of a severe budget to be unveiled at the end of October.
Speaking to toy suppliers recently, it seems that a few retail buyers have been getting a little restless and pushing them to do something – anything — to kickstart festive sales. In some cases, better terms and deals were being requested, presumably with the intention of using price reductions and promotional offers to entice consumers.
Other retailers have been asking when marketing support will kick in (and even suggesting it could be brought forward), although talking to a selection of seasoned media pros in recent weeks, the general consensus was that if anything, many toy companies will be starting their media campaigns a little later this year, rather than earlier.
That seems entirely logical, given there is a perception that many UK consumers will purchase late for Christmas this year — as indeed they have for the past few years.
Those retailers quietly panicking over October sales seem to have conveniently forgotten what happened last Christmas and the one before. In a way, it feels like we have gone full circle, back to the 80s/90s, when Christmas toy purchases didn’t really kick up a gear until after Bonfire Night (or perhaps Halloween and October half-term).
And looking at when Christmas falls in the calendar this year, that arguably adds further weight to the likelihood of a late sales surge. Christmas Day is on a Wednesday. Most people will finish work on the previous Friday, or possibly even the Thursday. That’s also when the majority will get paid.
That leaves them the weekend, plus Monday and Tuesday to finish off their shopping, with money in their accounts. That all points towards a massive final week from where I’m sitting…
Realistically, although toy suppliers and particularly retailers would prefer Christmas sales to accelerate earlier, it does feel that the festive season is becoming more condensed than it has been in previous years, both in terms of marketing campaigns and consumer purchasing patterns.
While that inevitably presents some logistical challenges, it also generates momentum and excitement that will hopefully see the toy community end the year on a high and give us a good springboard into 2025.
There are plenty of great new launches on the shelves, and retailers will undoubtedly be offering consumers attractive promotions and deals — it’s been well-documented that the UK toy market is more promotionally driven than most territories, due to the competitive nature of the retail channel here.
The big question is whether the UK economy has recovered sufficiently for Christmas sales to be great, rather than just good or ok. And if sales are great, will brick and mortar retailers manage to secure a strong share, or will online retailers — and Amazon in particular — continue to grow.
The specialist toy retail channel has fared relatively well in the UK in recent years and continues to extend its footprint. The Entertainer has recently finished its rollout in Tesco stores (the largest UK grocer, whose toy aisles are now run by The Entertainer). The mammoth project has been completed on time, meaning 861 branches of Tesco across the UK & Ireland now have The Entertainer toy aisles greeting shoppers.
It will be very interesting to see how Christmas sales stack up — talking to CEO Andrew Murphy earlier this year, he admitted that 2024 would be very much a learning exercise, with an element of ‘test and refine’ about the overall product mix within Tesco stores. I suspect that this learning process is about to accelerate rather sharply in the coming weeks.
Meanwhile, it has been another record year for the Smyths UK operation, as revenues and operating profits hit new heights — with further expansion hinted at for next year.
Barney is a Sales and Marketing Professional specialising in the Sporting, Toy and Gift Industries and the Owner of BCM Trading. BCM Trading was was established in 2003 to represent some of Australia’s highest profile licenses and brands as well as leading toy brands in the Queensland marketplace. The Toy Universe speak to Barney about his journey!
This article originally appeared in Edition 12 of The Toy Universe Magazine
