Toys and Games in Australia

Growth in toys and games despite decline in traditional toys and games

2018 was a challenging year for toys and games. Traditional toys and games saw a significant current value decline due to consumers’ changing purchasing habits.

Toys ‘R’ Us leaves the Australian market

After the parent company of Toys ‘R’ Us in the US announced it was filing for Chapter 11 bankruptcy in late 2017, there was uncertainty amongst Australian players in toys and games. Within a few months of the announcement, the Toys ‘R’ Us Australian counterpart also announced its plans to close stores and exit the market.

Manufacturers focus on omnichannel strategies

In 2018, manufacturers were concerned about the future of the retail landscape for toys and games. Players continued to focus on improving partnerships with retailers in different channels, such as mass merchandisers and department stores.

Mass merchandisers and department stores are set to increase

With the departure of Toys ‘R’ Us, trade sources have suggested that mass merchandisers and department stores will continue to benefit in the forecast period. As channel management continues to be a crucial factor in the competitive landscape in toys and games, retailers will have an advantage when negotiating deals around product range, margins and exclusivity.

Growth in toys and games is set to be driven by video games

Traditional toys and games is expected to continue to struggle to recover over the next two years, as the changing retail environment, along with changing consumer purchasing preferences in terms of toys and games for children, will continue to be factors influencing growth. However, the category is expected to return to current value growth in 2021, and then increase for the rest of the forecast period.

Files are delivered directly into your account within a few minutes of purchase.