A similar retail vouchers scheme is already in place across Northern Ireland and is designed to aid struggling shops and help the economy. 

Scots could be given retail vouchers as part of plans being considered by the government, which aims to help shops post-lockdown and improve the economy.

Even though retail outlets have been given the green light to reopen in many parts of Scotland, the sector has been badly hit by lockdown and low footfall, meaning revenues have been significantly impacted and jobs left at risk.

In Northern Ireland, retail gift cards worth £75-£100 will be given to adults to be spent before the end of March. First Minister Nicola Sturgeon said she has been exploring this scheme and hopes to announce something of a similar nature in due course.

Nicola commented: “On the potential for a retail voucher, we are looking at that, and considering that. We recognise that with all of these things, there is an importance with acting quickly just now, so I can’t give you a date for when we’ll make that decision, but it’s something that is under consideration.”

Scottish Retail Consortium (SRC) director, David Lonsdale, added: “Whilst a return to trading is crucial, it will not be a panacea for the industry. That’s why we hope to see early clarity from government over continued rates relief for the coming year, and short-term stimulus to boost consumer confidence and spending – perhaps through a high street voucher scheme like Northern Ireland is implementing.”

The Genius of Play Ambassador programme invites toy industry professionals looking to share their passion for play and the benefits of play to apply.

To amplify the voices of the toy industry, US Toy Association initiative The Genius of Play has announced the launch of The Genius of Play Ambassador programme. The programme invites toy industry professionals looking to share their passion for play and the benefits of play to apply online to become an Ambassador for play.

The opportunity is open to all individuals working in the toy industry who would like to support The Genius of Play’s mission, while building a reputation within their companies and the industry as advocates for play and children. Participants in the programme will serve as thought leaders within their own professional networks as well as with families, educators and other communities.

Genius of Play Ambassadors will have the opportunity to put The Genius of Play’s research information and tools for inspiring play into action by sharing posts across their own social networks, creating their own content ideas inspired by The Genius of Play, and serving as a key supporter and spokesperson of other ongoing Genius of Play initiatives.

“We are thrilled to tap into the talent and passion of countless people in our own industry as we work toward the common goal of promoting the critical role of play to the mental and physical well-being of people of all ages,” said Anna Yudina, senior director of marketing initiatives at The Toy Association. “Creating this new network will benefit all, giving voice to up-and-coming professionals who know play best as well as expanding the reach of our messaging both within and outside of the toy industry.”

Those interested in nominating a candidate for The Genius of Play Ambassador programme can complete this form or contact Janis Zegman on jzegman@toyassociation.org for more information. For additional information about The Genius of Play, visit thegeniusofplay.org.

Studio has hired a financial advisor to conduct a formal sale process, as revenues increase by 17.2%. 

Studio has announced plans to explore its sale options following an increase in profits and sales amid the Covid-19 pandemic.

In the 26 weeks to 25th September, the online value retailer saw adjusted profit before tax increase 52% to £17.7m as more Brits moved to online shopping, whilst non-essential high street shops were shuttered for parts of the year.

Revenues increased by 17.2% to £268m during the period, as Studio’s active customer base grew by 15% to 2.1m.

In the third quarter to date, Studio also reported “materially stronger profit performance” as November saw a less promotional market than the same period last year, with revenues up 32% year-on-year.

Studio said it is now undertaking a strategic review to explore sale options after receiving a letter from shareholders Frasers Group in October. In the letter Frasers Group, which owns a 37% stake in the business, told Studio it thought the group was “misunderstood by the market and as a consequence, significantly undervalued” and “although this may be fixable over the long-term, the group should conduct a strategic review.”

The board has since appointed Stifel as its financial advisor to conduct a formal sale process, however no interested parties have been announced as yet.

“I am very proud of the way that this group has responded over the last few months to the challenges of Covid-19,” group chief executive, Phil Maudsley, commented. “These interim results are testament to the strengths of our digitally-focused value business and the ability of our colleagues and customers to adapt rapidly to change. Our strategy to grow the Studio customer base and increase our customers’ spend with us, supported by our flexible credit offer has delivered a record trading performance which underpins our confidence in the group’s medium-term growth prospects.”

Moneeba Baloch looks back at how the toy market has fared over the past year and looks ahead to how the festive trading season might be affected by the latest lockdown measures.

If someone had told me at the beginning of the year that I would be writing this article whilst in a national lockdown to help fight a global pandemic, I would never have believed it. Reflecting on this year, it’s hard not to think about the lives lost and impacted by the Covid-19 virus. For the overall UK toy market however, things have not been so bleak. Sales have benefitted from parents and children spending more time at home and the industry is operating in a market worth over £1b so far and growing by +8% year-on-year up to week 1st November. With just six shopping weeks left before the end of the year at the time of writing, one thing is for certain – Christmas this year is going to be like no other that has gone before. Customers have been encouraged to get organised and shop early to avoid the Christmas rush but what does that mean for the UK toy market? It has proved relatively resilient so far and has grown more than twice as fast as the European market, so a positive finish for the year is anticipated, but how positive?

Q4 got off to a strong start with October 2020 up +9% versus the same period last year. Consumers reacted to the shop early message and growth for the month was driven by Construction, Games & Fashion Dolls. Building Sets was the top gaining category for the month, adding just under £8.5m to the market, while Fashion Dolls and Accessories added a further £5m. We usually see the Games category pick up in November and December; after enjoying such a strong performance during Lockdown 1, the category has started its seasonal pick up early and continues to add value to the market. Family Board/Action Games gained £1.5m for the month, while both Children & Adult Games also showed growth. Consumers were not only shopping early but were buying higher priced items than they did in October last year, with growth across all price points over £30 in October.

Looking at the other end of the spectrum, lower price point items have not been quite as successful this year. Collectibles now account for 10% of total toys and are worth just over £140m, but we have seen this sector decline. Nearly a quarter of sales have been lost this year due to impulse purchasing and footfall being impacted by the closure of brick and mortar stores. However, as we headed into Lockdown 2, the average number of collectible items on range did increase, as supermarkets continued to trade.

The toy market has performed better than we could have ever expected this year and has remained resilient. Historically, we know that December accounts for a quarter of annual sales, so the full year performance may yet change a lot from our current +8% trend. Based on where we are at the moment, if the rest of the season remains flat, we will still finish the year on a positive trend. We’ve seen consumers re-discover toy favourites this year, such as classic games and construction items – all key items for this Christmas period. The challenge now is to continue the success into 2021.

Read the full NPD article in the December issue of Toy World, here.

Container spot rates from Asia to North Europe are now 130% higher than at the start of the year, after a further spike last week.

Shipping rates have continued to rise steeply, due to a perfect storm of conditions: there is not sufficient equipment available, space is tight and suppliers have cargo that needs to move. As a result, carriers are said to be focused on maximising their freight earnings at the expense of all other agreements. According to one source: “Carriers will give priority only to higher rate space – whoever is prepared to pay more gets the space.”

Prices have risen from £2100 for a 40ft container in October to around £6400 currently. Some have even estimated that the rate could rise as high as £10,000 in January. There is genuine concern that these major price hikes will have a significant impact on product availability, as many suppliers will struggle to absorb the increase, while retailers are likely to push back on cost increases due to the prevailing retail climate.

One concerned observer commented: “At a time where every penny counts and retail is trying to get back on its feet, the impact of these increases, alongside the complexities in import through Brexit, will destabilise many product sectors over the next six months at least.”

Holly Stafford-Smith, director at Wotch Creations, which has just started supplying the toy trade with its collectible Smiley Halves range, commented: “I’ve been involved in importing for more than 13 years and the most I’ve ever known is $6k for a 40HQ, and even that was considered extreme.”

Supply chain specialist Richard Brooks, from Far Logistics Manchester, told Toy World: “It will be like this until after Chinese New Year – with reduced space, a lack of containers and increased rates. Anyone not factoring in additional costs to the supply chain for 2021 really needs to do that, along with additional transit times as port omissions at origin and port congestion in the UK are causing delays of a week or more. After what has been a race to the bottom for years on deals, I suspect that 2021 will not be so easy, with shipping lines increasing Peak Season Surcharges – one in particular is charging $1000 per TEU from Dec 15^th. It looks like rates will top over $8000 for January.”

Some people have gone so far as to question whether this situation could lead to some suppliers reconsidering their supply chain strategy, and even moving production away from the Far East, but as sourcing specialist Ger Murphy from Vantage Choices points out: “This is just not commercially viable. This is a one off freak increase: to move production would take 5 -10 years and it would involve huge investment and much higher production costs. Suppliers just need to ride out the next four months – this is undoubtedly the most viable option, as all competitors are in the same boat, meaning that nobody has an advantage over anyone else.”

There is also ongoing concern over the shipping companies’ approach, as Ger explains: “It’s interesting that freight companies all seem to be charging exactly the same increases. This is a trend that has been constant for 30+years. If there was more competition on ocean freight and less private meeting between the shipping companies, this arguably would not have happened. Retailers and importers take ups and downs and accept the situation. But when shipping lines have problems because they don’t want ship back empty containers, they make all their customers pay. That’s not right, but ocean freight is essentially anti-competitive, so I complete understand it.”

It also appears that pricing is not the only challenge facing importers, with ongoing congestion and hold-ups at UK ports leaving many shipping lines unable or reluctant to attempt to dock. Flexport’s Steven Field commented: “The price is one thing, but it still doesn’t encourage carriers to call at the UK due to port congestion. We’re coming to the stage when suppliers will probably have to look at feeder services from Northern Europe to get anything in from Asia, until Southampton and Felixstowe can improve their situation.”

The programme was broadcast on Channel 5 last night.

The two hour Toys That Made Christmas Great show was broadcast on Channel 5 on Sunday evening, highlighting some of the classic toys that have been huge Christmas hits through the years. The programme featured numerous toy trade luminaries, including MGA’s Andrew Laughton, Sarah Allen from Mattel, Bandai’s Nic Aldridge, former Toys R Us merchandise director Fiona Murray-Young, Just Play’s Anna Chapman, David Kremer from Seven Towns, industry stalwart Alan Munn and Toy World’s very own Rachael-Simpson Jones and John Baulch.

The toy industry representatives were joined by a selection of toy designers from across the globe, influencers, minor celebrities and assorted comedians to share their memories and reminisce about the iconic toys that have appeared under the tree over the years. Working from an original list of 50 toys, a panel of industry experts whittled this down to the top 25 which featured in the show. Some hugely popular toys just missed out on a place in the top 10,  including Buzz Lightyear, Power Rangers, LOL Surprise and Thunderbirds’ Tracey Island.

The top 10 toys were:

1. Rubik’s Cube
2. Star Wars
3. Cabbage Patch Kids
4. Barbie
5. Tamagotchi
6. Furby
7. Transformers
8. Teletubbies
9. Teenage Mutant Ninja Turtles
10. Game Boy

If you missed the show, it is available here.