3 minute read
Opinion: Letter from America
Prepping for the holidays
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 opened 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. In this month’s column, Rick explains why early planning for the festive season is more important than ever this year.
Firstly, let me welcome back all the indies in the UK and surrounding areas after having been in lockdown for a
lot longer than us. We are happy for you and trust the reception to reopening has been a resounding positive, as it has been in the States. I wish you all the best as we face the second half of 2021.
The time has come, once again, to make bets on this year’s holiday season, when in excess of 40% of toy sales traditionally take place over the months of November and December. But will the 2021 season be different? The answer is yes! It has to be when you consider the following:
1. This year will be a post-Covid holiday, and (hopefully) indies will be open for in-store traffic at full capacity.
2. Product availability is facing challenges. Everyone should now be aware of how backed up and chaotic the supply chain is. It’s an ongoing struggle (and increasingly expensive) to ship goods to international destinations.
3. Domestic distribution challenges are compounding the above, as manufacturers’ stock availability is patchy, and deliveries are taking much longer to arrive - and at higher costs.
4. The Amazon/online effect needs to be taken into account, as the pandemic has meant even more consumers switching purchases of larger items to home delivery.
In any year, it is hard enough to select the right products, sizes, colours and styles for the holidays six months out, and this year we will face the additional challenges mentioned above. These issues have caused us to review our promotional strategy, for fear product may not be available, which runs the risk of disappointing and alienating our customer base. But final decisions on stock must be made soon.
At Learning Express, our holiday season prep is a process that goes something like this:
1. Between Jan-April, products, trends and vendors to partner with for the upcoming season are identified.
2. We provide detailed info, pictures and videos on all new items to our store owners, so everyone has a good idea of the new products. Voting takes place by category – all our store owners have a say in what will be presented.
3. In late May, products and ranges are selected. Some space is left open in hot categories for late additions. This has become more prevalent as new products are introduced – or discovered - throughout the year. Terms, discounts and freight deals are locked in.
4. From early- to mid-June, zoom calls are held by our vendor partners to explain more about their products and any new items that we need to be aware of.
5. In late June, all orders are placed with vendors. Many are staggered over several months to control inventory levels and cash flow.
6. From July to September, digital and print promotional assets are completed and ready to share with store owners. Many are a combined effort between vendor and retailer. Training materials are also updated and transmitted to stores.
7. Then from October forwards, we are ready to rock n roll for the holidays.
A big question mark this year is whether the current “Squidget” trend (Squishmallows and fidgets) will continue and at what level. Will these crazes crash or have a soft landing? We just don’t know, but our best guess at the time of writing is a ‘soft landing’ for fidgets, meaning there will still be demand, just not at current fad rates.
Squishmallows, on the other hand, have been constrained by supply to indies. I believe the reopening of amusement parks this spring has stretched supply versus last year.
Indies received smoother supplies in 2020 when most parks and amusement attractions were closed. However, we believe that Kelly Toy will increase supply for later in the year and Squishmallows will be a dominant trend this holiday season, especially the seasonal plush.
Regardless, we know that speed, agility and spotting the latest trends affecting kids will be of paramount importance to reaping a successful season. As long as we are aware of the challenges we must face, I am confident that 2021 will go down in history as one of the best indie toy years in history - guaranteed.
Good luck to all.
