Toys and Games in the United Kingdom

Stable performance seen in toys and games, led by strong growth of video games

Toys and games recorded stable growth in 2018 in spite of a very difficult year for traditional toys; strong growth in the UK video game industry has enabled the overall stability. The difficult state of political uncertainty has undoubtedly had some impact on consumer choices with discretionary spending.

Collectibles and online gaming the biggest winners in 2018

The direction of video games as an important socialising and online tool became clearer in 2018, as witnessed by the high number of players on games such as Fortnite, which allow groups of friends to interact online via their avatars against other players. This style of gaming has also led to strong performance for static consoles such as PS4, which has shown consistent volume sales.

LEGO and Sony maintain their leading positions

LEGO and Sony maintained their leadership in traditional toys and video games, respectively in 2018. Both companies have benefited from excellent brand recognition and quality products that attract consumers; however, they had opposing routes to their leading positions in 2018.

Internet retailing records strong growth

Internet retailing has witnessed strong growth, taking shares from numerous other distribution channels. The biggest change comes from traditional toys, where the demise of Toys ’R’ Us has caused shares for traditional toys and games stores to plummet at a very high rate and the industry must find alternatives to reach consumers after the loss of such a large platform.

Positive outlook for growth during the forecast period

Toys and games is expected to post a slightly higher current value CAGR over the forecast period, driven primarily by the video game sales, which are expected to continue increasing as the industry heads towards further digitalisation. The high degree of online socialisation offered by current gaming platforms is very attractive to consumers and that seems to be the direction in which the industry is heading.

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