Opinion - Letter from America

Less talk, more action in 2023

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 focusing on the latest trends can help toy retailers diversify or maximise sales in store.

The toy and gift market moves quickly. Sometimes it is wise to be cautious and see how trends evolve, while at other times retailers need to lead the transition. One of these trends that we have bought into in a big way is tweens, progressing from toy to gift purchases. I have been highlighting this trend for a year, but not really thinking outside of the box enough, until our team went to market in January, found the right vendor partners and developed a plan to make a key statement in store.

The location we chose is right inside the front door to the right. This is the direction most customers turn when entering. The section is roughly 18’ by 16’ to start and cost under $300 to implement. While we want to capitalize on this business, we also know we are not going to be a tween retailer powerhouse like Justice, Sugar and Jade, Juicy Couture or Claire’s. But what we can do is offer quality, mid-priced, safe brands that appeal to both parent and child at an affordable price. We can also save a trip to another store for items that target this older crowd. We think this targeted strategy will yield big results, without forgetting our core toy brands and vendors and our main audience.

We set up shop around January 15th, and early results, from the first three weeks of sales show takings from new suppliers as follows: Zoey Koko(body products/butters) $401; Del Sol (sun changing items) $256; Mavi Brands (hair, bags, patches) $863; DMM Merchandising (spa) $117; Katsuki jewelry $101 amd Stickers (vinyl, computer, bottles) $340.

Now, we know January/February are pretty average months in terms of sales, so I’m happy with these figures to start with. We are expecting a jump in March/April with Easter sales and as awareness of the new section develops. I will keep you updated as the year progresses, and as we round out the assortment with new product and price points that we feel fit our demographics.I would love to hear from any UK indies that have started a new section in store - what have been the results both short term and longer term? Did you promote heavily or let it develop organically? Did you enlarge the section or shrink over time, and of course was it more profitable? What are you currently looking to do or test in 2023?

There are three other key trends we are looking to exploit more, but these are not as clearly delineated on the sales floor. These trends include:

• Health and Wellness - some of these products fit within the fashion/ tween section but not all. Weighted plush is growing in popularity and we have seen a wealth of new lines over the last two years. Some are huggable, some have lovable faces, some warm in the microwave and some are extensions of existing plush lines. Sensory toys include squishy feel, smells, sight and sounds. For some kids and adults, these are tween oriented but really fit in a sensory section. Here in the states, fidgets now run the age gamut from the very young to old.

• Pokémon - is huge everywhere. We do have a section but due to pilferage, high demand and inconsistency of supply, it is difficult to make this a statement area, even though the trends support it.

• Magnetic products - people continue to be fascinated by magnetic toys. From as early as 12 months right through to adulthood, everyone is enjoying magnets. Due to age requirements and safety protocols, we find it challenging to install a section dedicated to magnetic items; we’ve decided it’s better to piecemeal our selection by age and safety requirements.

The lesson we continually learn is to challenge ourselves with new ideas (this is why attend markets and shows) but always remember what our core business is. We are a toy store, and we bring joy to kids every day; we must always keep this front of mind. I wish the best to all of you in your quest for the next big trend.