Letter from America

Only in the toy biz!

After 20 years working at A.C. Nielsen/D&B Research Company, Rick opened the first Learning Express Toys franchise in the Chicago area in 1996, and then became a sub-franchiser, opening nine more stores. Although leaving the corporate environment behind, he has combined his expertise in data and numbers with a passion for the toy retail space. This month, Rick looks at how the latest crazes are driving sales for indies in the US.

We’ve now gone from normal times, to pandemic, to roaring times, all in less than a year. Only the toy industry can experience this wide range of sales (and emotions) in the span of nine months. What began as an average start to 2020 quickly became a downturn, as indie closures took place worldwide due to lockdowns resulting from the global pandemic. Brick and mortar stores were forced to quickly pivot to kerbside delivery only, as well as fast-track development of their online strategies, while the big box stores that had been deemed essential were raking in the sales, especially on toys. Oh, how that has changed recently.

Highlighting the recent popularity of one recent craze that has taken indie retailers by storm, the New York Times ran a headline in March: ‘Squishmallows Are Taking Over’. It’s true that the current Squishmallow and Fidget Toy craze (dubbed the Squidget craze here in America) is only gaining steam. Here at Learning Express, it started on January 14th – I specifically saw a spike in sales on smaller fidget items (under $10) like Tangle, Needoh balls, Popits (Foxmind “Last One Lost”) as well as fidget spinners –yes, fidget spinners, remember 2017?! Then add in the growing popularity and scarcity of Kelly Toys’ hit plush Squishmallows, and you have a full on roaring 20s feel.

Ripe with cash saved up from last year’s lockdowns, and an increase in gifts of money given to kids by grandparents, there is a pent-up demand to spend, experience new products and compete with each other on TikTok with TikTok challenges and showcasing one’s collection or stash of goodies. TikTok is hugely popular and for the first time is driving traffic to physical stores.

The media has reported ‘Squishmallow hunts’ where parents drive kids from store to store, looking for their favorite or hard to find Squishmallows. There’s also a growing craze for fidget toys. One family drove four hours to our store in the cold February weather simply to find cool fidget toys. It turned out it was their 10-year-old daughter’s birthday and she wanted to go to Learning Express in Lake Zurich, IL. after following us on Facebook and TikTok. Who would have thought?

So how big are these rocketing sales trends? The sales and growth rates we are seeing here in Lake Zurich are being echoed across the US. January was up 49% (YOY), February up 117% and March trending up 133%. As our doors were closed last year from mid-March due to the pandemic, we expect this increase to go much higher – we are seeing truly record dollar sales.

Squishmallows introduced a Mariachi series that was on trend, as well as Springtime and Easter assortments that have fueled the market. The latest additions have sold out completely and shelves are dry right now as we write, due to shipping delays and issues with entry into ports. But the Squishmallows line- up throughout 2021 is superb and I’m confident that as soon as we get stock in, it will fly off the shelves, and bring in excited customers.

The craze for fidget products under $10 started here in the US with schools and teachers indicating it was OK to attend class online with a fidget toy, to help focus. I believe this then encouraged parents to allow their child to purchase many of these low-cost items with their own money. Then kids began to share what they had on social media. Nobody saw this coming, but the category has seen a massive influx of cash.

Having the right product assortment and adding in new types of fidget toys every week, along with stocking the latest Squishmallows, is sure to propel momentum at indies well into 2021. Having TikTok fans join our Facebook Moms online daily, we are ready to stay on top of the latest toy trends, showcase new products and welcome all our customers back in store - when they will value the in-store experience even more.