Unique: Rick Derr’s Letter From AmericaToy World Journal

Within the Could difficulty of Toy World, Rick Derr of Studying Categorical Toys within the US appears at toy gross sales developments and the way indies ought to reply.

“This 12 months, January and February gross sales carried out in line with plan, however sadly March didn’t. Does this signify troubled waters forward for the toy market, or is it only a return to baseline normalcy?” asks Rick.

“Within the toy business, it’s often finest to take a long-term view to maintain gross sales in perspective. Nonetheless, we’re a forward-looking enterprise, with newness on the coronary heart of producing pleasure, and the shortage of that single component can harm the complete business.”

Rick notes that, for his retailer, March began out strongly, however for the subsequent three weeks main as much as the Easter vacation, gross sales have been down. “Was it too early for Easter spending? Did bank card spend and excessive inflation on two core segments of our financial system – Retail Meals & Beverage and Non-edible CPG – impression Basic Merchandise gross sales, which the toy class falls underneath?”

“I don’t suppose so in our case – as a substitute, I blame journey and our demographics,” explains Rick. “With an early Easter in 2024, this impact was felt far more. In-store visitors was down, however the common buy worth for those who stayed behind was up 2.1%. Encouragingly, in the course of the first week of April, gross sales have been again to regular.”

Rick then takes a take a look at the place the business stands in comparison with 2019, the pre-pandemic benchmark, and provides his predictions for the approaching 12 months, exploring potential components which will have an effect on toy retail.

To learn the remainder of Rick’s insights on the indie sector within the US, click on right here for the complete article, which appeared within the Could version of Toy World.