Kayes of Cardiff - a gold-standard reputation

As Kayes of Cardiff celebrates its 40th anniversary this year, Gabriela Jiménez García sits down with Philip Kaye to discuss the company’s origins, what make it a standout distributor and the latest ways the company is helping independent retailers thrive in a challenging market.

The 14th-century English proverb: "mighty oaks from little acorns grow," is a saying that resonates with founder Philip Kaye as he takes us through the success story of how Kayes of Cardiff has evolved from a regional beach goods wholesaler to a national distributor representing some of the biggest brands in the toy industry.

Established in 1985, Kayes of Cardiff began by providing retailers in Wales and the South West with a range of buckets, spades and pocket money toys. At that time, the company operated with a small team: one person in the office, one in the warehouse and one salesperson on the road. “We imported a small amount from the Far East right from the start - and built-up strong relationships with a few brands, such as Matchbox,” says Philip. In its first 18 months, Kayes generated a turnover of around £300,000 and gradually started to distribute more branded product.

“Bruder was our first branded partner, and we initially distributed its products through a connection with Humbrol,” Philip tells Toy World. “When the company lost the distribution rights, we reached out to Bruder directly and were appointed as its UK stockist, which marked the beginning of our expansion.” Since then, Kayes has broadened its scope to supply the leisure attraction sector, work with theme parks and farm parks, and has forged partnerships with renowned household names like Mattel and Orchard Toys. The company has also received various accolades acknowledging its dedication and effort in supporting the specialist independent retail channel, including a Special Recognition Award presented at last year’s Toymaster May Show.

Indeed, a large part of Kayes' ongoing success can be attributed to the successful relationship it has developed with the Toymaster buying group, which has led to numerous opportunities and partnerships. "We began supporting the Toymaster Christmas catalogue, allowing members to purchase items in smaller quantities, rather than having to order directly from each supplier with full carriage-paid orders. This approach enabled us to build relationships with major companies like Playmobil, Spin Master and Mattel, and to grow our connection with many small indies,” explains Philip.

Today, Kayes stands out as an exemplary distributor due to its genuine commitment to helping small retailers succeed in a competitive market. “We champion the cause of independent retailers because they are integral to our business,” Philip notes. “Purely eCommerce traders take business away from high street stores and create challenges for them, so we decided not to supply online traders and primarily focus on supporting independent high street retailers.” Besides toy shops, Kayes also works with businesses such as bookstores, pharmacies and garden centres looking for something extra to add to their stores, enabling them to purchase branded products in bulk or single quantities at the same price that suppliers charge for larger orders.

Last January, Kayes announced an exclusive partnership with James Galt, expanding its offering to include the company’s full range of pre-school, stationery and craft items. Following significant success with the Orchard Toys line, Kayes believed that Galt’s collection of crafts and puzzles would sit nicely alongside it in the portfolio. “Both companies target the same customer demographic, and we knew that this collaboration would help enhance our customers’ offering,” comments Philip. “The more brand names we have under one roof, the better it is for the retailer because they can mix and match.”

Although Kayes had previously sold Galt products through the Toymaster catalogue operation, the supplier had always had its own sales team. Once Jumbo acquired Galt, the company discovered that it wasn’t reaching clients in the Scottish region and sought help from Kayes to connect with them.

“Galt wanted to expand its presence in Scotland without hiring another sales agent. As we’d been partners for at least 15 years, they entrusted us with the entire Scottish customer base, which we passed on to our Scotland-based agent,” explains Philip. We are just as pleased as Galt is with this collaboration, and our customers are too.”

Kayes now has an extensive sales team of agents and representatives making its reach even greater and ensuring that most retailers can benefit from its face-toface servicing.

Looking towards 2025 and beyond, Kayes is implementing changes to improve its operations and ensure that customers receive maximum benefits. There will be a more selective approach to the ranges it stocks, solely focusing on products that are best suited to small, independent retailers. Philip explains: “One of our biggest challenges has been selecting products that fit our market

while keeping stock levels manageable, to enable us to maximise our order execution rates. Therefore, we have decided to be more selective about what we stock. Although we still offer comprehensive ranges and get special orders in for certain clients, we are prioritising product ranges that are most suitable for our independent customers.”

This approach is already proving a shrewd move for two of the companies that Kayes works with. With almost 1,500 lines available, managing Ravensburger’s extensive offering had become increasingly challenging, so Kayes has reduced the number of lines it stocks in order to maintain control over inventory levels. The distributor has also streamlined its Playmobil range, focusing on stocking items up to a £30 RRP – a price point that has proved to be the sweet spot for independent retailers seeking products that will sell well throughout the year.

This past Christmas, Kayes also helped its customers by reducing the threshold for carriage-paid orders during the busy period. “Retailers are becoming more cautious about committing to large order volumes and maintaining high stock levels, which is why we decreased carriage-paid orders from £350 to £175 for the busy months of November and December,” explains Philip. This adjustment has significantly helped small independent retailers, who can now manage their cashflow more effectively and have better control over their stock.

The addition of new sales systems and tech has also helped the company keep up with the times and ensure a smoother process with customers. “In the past three years, we’ve introduced a new computer system, and this year we are enhancing it by providing new sales tablets to all our representatives,” says Philip. “These tablets will provide

employees with much more information, including up-to-date stock lists, and will improve interactions with customers.”

Kayes prides itself on its fast turnaround times. The team can react far more rapidly than many larger organisations might be able to, which guarantees that retailers have stock when they need it, even during busy periods. Philip adds: “Often, large companies who rely on third-party distribution centres find it difficult to quickly access information for their customers. Unlike these big corporations, we can respond swiftly to inquiries. When a customer phones up with questions about a particular product, we can go directly into our stockroom, open the product, and provide them with the exact information they need. The flexibility and reliability of our delivery is also a big advantage, as well as keeping good communication with retailers.”

The distributor boasts a large warehouse of around 30,000sq ft, in addition to external storage, and has large showrooms in Cardiff which showcase all the lines it stocks. This allows retailers to view all available products in the flesh before selecting the items to fill their shelves. Kayes no longer participates in most major trade shows (besides Toymaster and AIS) and has focused instead on providing a more personalised shopping experience for its retail partners at its headquarters. “In 2022, we spent £70,000 on a stand at the NEC’s Spring Fair but ended up losing all our orders and more due to Covid,” explains Philip. “The following year, the business became stronger because more people started visiting our showroom. Instead of investing heavily in exhibitions, we now invite customers from regions such as Cumbria, Kent, Cornwall, the Northeast and Scotland, arrange overnight accommodation for them at a local hotel and provide them with hospitality. This allows them to enjoy a more personal and relaxed shopping experience with us, as opposed to being in a busy trade show – and they can see our entire range, which we would naturally have to limit at trade shows due to space constraints.”

Kayes will be celebrating its 40th anniversary during this year’s Toymaster May show in Harrogate, which is one of the key dates in the toy calendar. “I’ll be taking the whole sales team and some office staff to Toymaster, as not all of them have attended before – and this will be a little bit of celebration,” says Philip. However, the most important way the company is celebrating is by continuing to build on its legacy and providing customers with a goldstandard service, helping them reach their potential and ensuring that they can stock a wide range of top-quality products. “From a customer’s point of view, I believe that continuing to do what we’re doing is the true celebration,” affirms Philip. “I’m looking forward to many more years in the industry, servicing and helping all retailers stock the widest possible selection of brands.”