Channel Review in Toys and Games

Toys and games market healthy across video games and traditional toys

Toys and games saw positive growth throughout 2011-2016. Video games saw a major spike in sales in 2014 following the release of Xbox One and PlayStation 4, while traditional toys and games peaked in 2015 due to the release of a new Star Wars film.

Non-store retailing substantially outperforming in-store

Non-store retailing is greatly outperforming in-store retailing in toys and games. A large factor behind this is the growth of free-to-play gaming in video games, in particular in mobile gaming. However, within traditional toys and games, internet retailing is on the rise as parents become more convenience minded.

Private label sees minimal presence outside Western Europe and Asia Pacific

Private label was a small and declining force in toys and games, with its only real presence within Western Europe and Asia Pacific. In these markets, local retailers have a longer history of established private label brands than many of the other traditional toys and games retailers globally.

Hypermarkets lead in-store retailing while traditional and media products retailers fall behind

Within in-store retailing, hypermarkets are by far the fastest growing retailers for traditional toys, as continued holiday discounting across the stores drives foot traffic and increased toy sales. Traditional toy stores such as Toys “R” Us and media products stores such as GameStop mostly lost sales to the heavy discounting by hypermarkets as well as to internet retailing.

Video games will continue to lead strong internet retailing growth

Through 2021 internet retailing is expected to lead toys and games retailing growth, as increased mobile gaming growth is expected to be the strongest driving force in toys and games and new parents continue to prefer the convenience of shopping online to seeing and testing toys in-store.