We’ve talked about how in 2019 there are so many big movies and toys coming. Well, new forecasts say that won’t be enough to prop up the toy market.
A report by research firm IBISWorld expects the toy and game retail industry to continue to see a revenue drop in 2019. That drop could reach 15.9%, InsideRetail Australia reports.
“Prior to its demise, Toys ‘R’ Us was the largest retailer in the industry, with a market share of over 20 per cent,” IBISWorld senior industry analyst Kim Do said.
“However, the company’s decline has accelerated the rate at which department stores and online-only retailers have captured market share, as consumers have shifted their spending away from industry retailers.”
So, where are people buying toys? Mostly online. The Commonwealth Banks says that in 2019 online retail spending grew by 11.9%. On average people spend $97 on online transactions in 2018. This trend will continue in 2019 as more people gain confidence in online shopping.
Basically, the toy industry is changing and becoming more and more digital. This will bring new challenges and retailers and manufacturers are going to have to figure them out quickly.