Last Updated on January 3, 2020 by Danielle
Despite being described as ‘the most turbulent period in living memory in the toy business’ and the demise of Toys R Us, consumers have purchased more toys according to the NPD Group.
Despite the imminent closure of Toys R Us and what has been described as “the most turbulent period in living memory in the toy business,” toy sales in the United States have experienced a rather surprising uptick of 13 percent in the first 14 weeks of the year according to The NPD Group.
Some of this growth has undoubtedly been generated from discounted or liquidated Toys R Us sales. Some of this merchandise will unlikely be repaid in full at the expense of toy companies.
Interestingly, growth for the first 10 weeks of the year came in at two percent which was on pace with growth over the same period in 2017. However, for the period between March 11 and April 7, toy sales grew by 36 percent, compared to the same period last year. As a result, this helped drive double-digit US toy sales growth over the 14-week period.
Generally, toy sales experience a sales boost for the two weeks leading to Easter. According to NPD’s analysis, it concluded roughly $180 million extra was generated directly as a result of Toys R Us’s liquidation.
The biggest growth categories for this 14-week period were Youth Electronics and Dolls, driven by WowWee’s Fingerlings and MGA Entertainment’s LOL Surprise!, respectively, and All Other Toys. Recall earlier this year, we reported that LOL Surprise Dolls were the best-selling toy of January.
Julie Lennett, SVP and Toys Industry Advisor at The NPD Group, added, “The Toys R Us bankruptcy had brought incremental sales opportunity to the toy industry, and with at least a month to go until it wraps up, there is still more to come.”
Source: Toy News