It’s no secret that toy stores have problems because of the high popularity of online shopping. New research points that it’s only going to get worse.
The research and consulting firm GlobalData forecasts that 46% of toys and games will be sold online by 2022 in the UK alone. This means that the physical shopping market is getting smaller and smaller, ToyNews reports.
And this means that traditional toy stores are going to have even more difficulties attracting customers. And that’s going to start happening sooner than 2022.
GlobalData expects Amazon to overtake Argos as the largest toy retailer in the UK by 2020. Already, 51.4% of toys and games shoppers visited Amazon in 2017 alone. Most still then go buy the toys at the local store, but they always check the online prices first.
“Amazon has managed to improve shopper loyalty with its Amazon Prime services and impressive range of toys and games. Prices on this year’s must-have toys are lower than its competitors, its range is unrivalled and the convenience of its offering is market-leading,” said Molly Johnson-Jones, senior retail analyst at GlobalData Retail.
The report suggests that electronic toys and traditional toys will support strong market growth out to 2022. Electronic toys will grow to hold 13.1 per cent of the total toy market in 2022, while arts and crafts, constructions toy and board games will hold a total of 30.5 per cent for the same period.
“Electronic toy growth is not changing the market yet, as older parents and grandparents still choose traditional toys over toys which bridge the interface between physical and digital play,” continued Johnson-Jones.
There are some other good news. GlobalData expects that the UK toy and games market will grow another 16.2% until 2022. This will help out struggling stores a bit, but it’s not a cure. So, traditional toy stores have to start looking at other alternatives to change their model and stay in business.
