Talking Shop

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This month, Toy World caught up with several AIS Playroom members who run successful toy spaces within department stores. Offering their customers a unique retail environment thanks to the independent nature of their businesses, they tell us what’s working well in their locations.

David Fynn - John Sanders, Ruislip

Our company history goes right back to 1865, when John Sanders opened a shop in Ealing Broadway. This soon turned into a large department store. When looking to retire in 1925, John sold his business to the Rowse family, which already owned a department store in West Ealing. We are still a family business today: our chairman, Richard Rowse, is a direct descendent of the brothers who bought the business all those years ago. The current Ruislip department store originally opened in 1932, then was acquired in 1985. In those days it was a traditional drapery store specialising in furniture, bedding, haberdashery and fabrics.

We needed to change the direction of the shop and decided to open a toy department. In hindsight, with Argos and Woolworths already on the high street at the time, this was quite a risk, but within six months we knew we had a success on our hands. At 2,000 sq. ft., Toys is now the largest department within our 9,000 sq. ft. store. We are aware that many similarly sized suburban independent department stores have found it difficult to survive, but we are lucky to have a vibrant local high street and have built a loyal customer base.

Last year was a bumper year for toys in the shop, although this was tempered by a significant drop in online business due to the Royal Mail strikes. Happily, sales remain strong this year, even though we have noticed a slight drop in average spend. Toys is currently running at +13% up on 2022, although with increased costs, we probably need to be at least +10% up just to stand still.

The two most dominant trends for us over the past couple of years have been Pokémon and Plush, and it looks unlikely this will change any time soon. Pokémon Scarlet & Violet has launched well and sales of Squishmallows show no sign of tapering off. There’s a healthy collectibles market too and Character Options’ Aphmau stands out as a really strong brand. We have seen a bit of a resurgence in the Arts & Crafts category after a few years of flat sales, but now it seems that what you make has to be ‘TikTokable’. Canal Toys, in particular, has got this sussed.

Our best performing pre-school licences are Paw Patrol and Bluey, while our nursery/baby area is strong thanks to traditional brands such as Lamaze (Tomy), Taf (Halilit) and Kaloo (Juratoys). We’re also starting to see sales of puzzles pick up again. As a department store, we have a high percentage of more mature customers, so the Gibsons range of traditional puzzles is perfect, and its ‘buy six, get one free’ loyalty scheme has proved a success.

Two of our biggest suppliers are Asmodee and Lego, although we have many smaller suppliers that are a pleasure to work with. Schleich and Depesche supply excellent in-store fixtures and are superbly efficient.

We joined AIS back in the 1960s, so we have had plenty of time to see how much group membership benefits us. The Cenpac finance system and the ability to access direct import product via the FOB programme are the most obvious direct benefits. The PlayRoom toy division hosts the annual INDX show, which is our most important ordering show of the year, while Rosie [Marshall, head of Toys & Children’s Gifts] and Aimee [Hill, toy selector] each possess a wealth of knowledge about the toy trade, both historical and current, and are just a click or a phone call away. Their support is invaluable.

We are feeling positive about the year ahead. We have recently coped with lockdowns and political inertia, so I’m sure we will be able to find a way to cope with the increased costs associated with inflation. As an independent department store, we have the flexibility to adapt to constant changes in the marketplace. For example, although we have stocked a large range of Funko for many years, the dominant trend recently has been Anime rather than Disney or Harry Potter. This brings a different type of customer into the shop and means that at the ripe old age of 64, I have to get my head around Jujutsu Kaisen and Hunter x Hunter – which, of course, is the way it should be.

Richard Barfoot - Vincent Davies, Haverfordwest, Wales

Vincent Davies is a modern, vibrant department store with a range of departments. Vincent, whom the shop is named after, started the business in 1906 as a traditional grocery store known as Pioneer Stores. Six decades later, the business had outgrown its town centre premises and Vincent’s eldest son, Ralph, purchased a larger out-of-town property. Today, Ralph’s granddaughters, Sarah and Lindsey, run the store, which is around 4,500 sqm in total, with a dedicated toy department of approximately 170 sqm.

I am glad to say that the toy department is performing strongly so far this year - takings are currently up +13%. This follows on from a record year last year which saw an increase of +14%, which is very pleasing. It would seem that the toy sector has been quite resilient during the cost-ofliving crisis and that children are still being treated. We have sold more units at lower price points and big-ticket items have slowed down accordingly. But with inflation running at +10% and the price increases we saw in 2022 from manufacturers, we needed to show an increase just to stand still.

We are seeing strong sales from our plush ranges and have also had a selection of arts & craft ranges performing well, including Eugy from Brainstorm and Hey Clay from Tomy. We have just taken delivery of the new Beauty Me stand from Depesche, from which I am expecting to see strong sales. Depesche has always been a very successful range for us, launching new products regularly to keep the collection fresh.

My top five suppliers are Lego, Depesche, Character Options, Playmobil and Schleich. We are lucky to have some very good company representatives who look after us in terms of stock and getting the very latest products, and we get quite a lot of help and support from most of them in terms of POS materials and display stands to help promote the products in store. Branded material and fixtures always work well and have an impact on sales, which just shows the importance of this kind of support. Our reps are also helpful in supporting us on the occasional slowselling line, to ensure stock is turning over regularly and shelf space is being used to its full potential.

We run costumed character days when we can; previous Sylvanian Family (Epoch) and Playmobil events have proved popular. We recently held a Hey Clay demonstration and will be looking to do this again in the summer, along with an Eugy event day, as this was very popular last autumn. We run regular Treasure Hunts in store during the school holidays - currently there’s a royal themed coronation hunt taking place.

We are AIS members and the main benefit for the toy department is the access to the INDX show, along with introductions to new companies. I have been able to make many new supplier contacts by attending the shows, and being a member of AIS has opened doors for me that may not have been as easy to get through without being part of the group. It has also been useful to meet other buyers; to be able to learn from them and bounce ideas off them – this is how I hear about ranges that I may have been missing out on. We have been a member of AIS for over 30 years. I attended the launch meeting for PlayRoom and have been a member since its inception.

We are very fortunate to be located in a standalone, out of town store that has ample free parking. We attract customers from the whole of Pembrokeshire and into Cardiganshire and Carmarthenshire. Although Pembrokeshire is a tourist area, we are very well supported by our local customers all year round which gives us a core customer base, although we do benefit from tourists too – especially on wet days. As an independent business, one of our main benefits is that we can react quickly to market changes. When opportunities arise, we can make decisions and implement them quickly. I am very fortunate to work for a family business which is always looking to invest and make changes for the good of the business.

The main challenge we are all facing at the moment is the cost-of-living crisis and inflationary pressures. Footfall is certainly an issue; maintaining it - and ideally increasing it - is always a priority. However, trade so far in 2023 remains quite buoyant. As a buyer who looks after Gardening too, I am always torn between wanting the sun to shine for the gardeners and garden furniture sales and for rainfall to drive people into the store. Some customers will happily spend half a day wandering and having lunch or afternoon tea.

I currently feel quite positive about the toy trade and have recently added a few new suppliers to my offering, such as Bandai, Spin Master, Mattel and Jazwares, which I am hoping will help us move on to the next level as a toy destination. The movie franchise market is always a hard one to call, but I have a feeling that the Barbie movie is going to be popular and will hopefully trigger an uplift in related products. Overall, I hope to see the toy department continue to grow and expand. Fingers crossed, 2023 can be another record year.

Julie Murphy - Creaseys, Guernsey

Our family-owned business is now in its fifth generation, having started up in 1899. We began with one shop in Mill Street, but over the years have been able to expand and spread around Guernsey. Despite the cost of living crisis, I’m feeling positive about sales for the rest of 2023. After the Covid-19 lockdowns when things went a bit quiet, our customers have shot back into our stores and sales have been going well ever since. Although people may be saving money in other areas, luckily kids don’t seem to lose out – there will always be birthdays, Christmas and a will to keep them entertained.

Lego sales have been strong, particularly the licensed, exclusive sets. Star Wars Lego has been a big hit, as well as Harry Potter. The other suppliers which have seen the most success so far this year have been household names like Mattel, with Hot Wheels and Barbie; Hasbro and MGA. Pokémon cards are still selling really well. In soft toys, Ty and Keel have been the most popular plush ranges.

We took on Craft Buddy a couple of years ago and the whole range is selling extremely well. We also have popular offerings from Ravensburger - including Jigsaws, Brio trains, Gravitrax and Memory Games - and Spin Master, with Paw Patrol, Kinetic Sand and Gabby’s Dollhouse. Last month, we introduced Connetix, which are magnetic tiles for building, and we’re pleased with how the range is performing so far. It’s always encouraging to see a new range succeed.

Our Arts & Crafts section sells well all-round. We stock lines from Galt and quite a big range from John Adams. Brainstorm’s Science range is very popular too. Other strong sellers include Sylvanian Families and Crayola: although we hadn’t done anything with Crayola for three or four years, we reintroduced the range last year and it has gone down extremely well with customers.

Footfall and sales always rise when we hold in-store events. We run a number of activities during the school holidays, and we sponsor the Guernsey Street Carnival in July and August, which also includes activities for children. There’s an outdoor fancy dress parade, and in-store activities range from events like a Lego play day, sand play or a treasure hunt around the shop, to colouring activities and a Play Doh day.

We’re planning to run a play day with Hey Clay, from Tomy, in June. We try to offer something different during the summer to keep the kids occupied - and something that doesn’t cost them. Initiatives like this bring children and their parents into the shop, and we always get a lot of additional sales on these days. For Easter, we organised a Lego Easter chick build which went extremely well – we were packed for the best part of the day.

We have a lot of loyal customers. Since Covid, more people seem to be shopping local, but there will always be those who prefer to sit at home and buy online – we will always be up against the convenience of the internet. But the other side of the coin is the many people who enjoy the interaction they get in store, especially after having been stuck in their homes for months.

With the exception of the big, exclusive Lego sets, most people are buying toys at the cheaper end of the spectrum the moment. We sell a lot of sandpits, but larger outdoor equipment is more of a considered purchase; unless customers have a big garden, we only see quite modest sales as there are quite a few parks on the island where kids have space to play.

We joined AIS about two years after it opened, so we’ve been part of that group for more than a decade. The benefits of being an AIS member are excellent and the discounts from suppliers that the group manages to negotiate on our behalf are a great help to our margins. The group also organises a lot of promotions that we can take advantage of, and the team sends us a newsletter every week, which we appreciate.

This year, I missed London Toy Fair; unfortunately, the plane from Guernsey wasn’t able to land, but I’m sure we’ll be back in 2024. So the AIS/INDX show was a welcome chance to see new ranges. What I like about the show is the convenience of having a lot of toy companies all in one room. But it would be better if even more toy companies could exhibit at the show to offer a bit more choice. I think holding this year’s event in March was a bit too early; they’ve been talking about trying to move it to later in the year and I would definitely be in favour of that.

Debbie MaloneyAustins Department Store, Devon

We started as a haberdashery store on the 1st March 1924 with an aim to give value, variety and a friendly, knowledgeable, efficient service to all customers; we’ve kept this goal throughout the years. The business began with the owner and three shop assistants and has now grown to employ 83 staff –not including concession counters – across four stores situated around Newton Abbot’s historic clock tower. The main store covers 61,000 square feet, 6,200 of which is toys.

The start of the year was challenging for the Toy Store, but we are now trading +1% up on last year. We saw a rise in sales of outdoor toys during the Easter holidays and we are optimistic that sales will continue to improve as the weather does.

Our current bestsellers are Lego, specifically Star Wars, Speed Champions and Ninjago; Squishmallows; Pokémon Cards; Tonies; Sylvanian Families and pocket money toys. We also have an amazing selection of puzzles which sells extremely well.

Our major suppliers are Lego, Hasbro and Mattel. We conduct a fair amount of business by using B2B online ordering, which has proved incredibly useful as we can get up to date information on stock availability. We find that the best service comes from companies that still have representatives or agents who visit us, such as VTech, Jazwares, Schleich, Depesche, Winning Moves and Galt.

We will have competitions and special offers running in store over the summer period; customers enjoy our colouring competitions, trails and activities.

We have been AIS members since 1966. For the Toy department, being a PlayRoom member gives us the benefits of discounts and special offers, along with promotional material and access to FOB products.

Like all retailers, we are facing some challenges this year, reflecting economic issues in the country. In the face of the rising cost of living, along with the wage increases, we are trying to be more efficient with time and resources. Our customer demographic has been affected by high rents, mortgages and childcare costs, so we make every effort to be price competitive and cater to all budgets. We also offer a Toy Club all year round to help families budget for all occasions, and we have taken steps this year to have more toys suitable for gifting as part of our selection.

While online shopping continues to grow, we at Austins strongly believe that you cannot beat shopping in a store. Where else would you receive first-class customer service and get to see the product before purchasing? We are hopeful that as inflation begins to fall and confidence in the high street returns, we will have a successful second half of the year.

indie viewpoint

Mark Buschhaus and Stephen Barnes Toy Barnhaus

We’re going to need a bigger stockroom…

Sales over the last few weeks have continued to be very encouraging, with all the bank holidays and teachers’ strikes helping to drive footfall to stores. This was on top of a strong Easter holiday period. We celebrated the Coronation by closing all our stores for the morning to allow our colleagues to watch it. This was the right decision, as there was minimal footfall in the morning, but the afternoon was steady when we opened. We more than made up for it in the days before and on the extra bank holiday.

We’re halfway through May now, and the figures are looking good. A big driver of sales this month has been Lego Disney 100 Minifigures, which has been our best ever launch. Disney products have seen an uplift thanks to the marketing around the Disney centenary; the Lego Disney Up House continues to sell well, as well as Disney plush. We’ve previously highlighted that anything Stitch-related has been popular over the past year, and we’ve recently taken delivery of Stitch Squishmallows, which has only added to these sales.

This year is notable for the number of major blockbuster films coming out that should drive sales of related products, and it’s great to see the return of this type of sales. The Super Mario Movie was very popular, and we have the release of The Little Mermaid, Fast X and Transformers: Rise of the Beasts over the next month to look forward to, with Teenage Mutant Ninja Turtles: Mutant Mayhem and Trolls Band Together coming later too – there is lots to get excited about.

It does feel like everything is virtually back to normal after the pandemic now; we finally removed the customer screens at the tills recently, the last change in our stores.

We are writing this as we travel back from Harrogate after another great Toymaster show. It always seems to go by so quickly, but once again, we can say that it was a resounding success. As usual, it seemed like the toy trade had taken over Harrogate, as well as the Majestic Hotel. The weather was kind, with plenty of sunshine, but at a temperature that meant it was still pleasant in the marquees, and there was a good buzz about the show. Last year, there was a sense of euphoria at being back for the first time in three years, but this time it felt like everything was back to normal and it was back down to business with a vengeance.

All credit to Yogi and the team for organizing a fantastic show, and for some great evening entertainment - a highlight for us was the gospel choir which performed on the Wednesday evening. The Majestic has also been improved massively by its refurbishment; it really is a great place to do business – albeit a lot of that took place at the bar! It was great to catch up with so many other members and suppliers over a few drinks.

It was an intense few days, but well worth it. I’m afraid we’re both getting a bit older now though, so came away looking forward to an early night.

There were some fantastic deals to be had at the show – but we don’t want to know what we spent! We found lots of good clearance lines this year, and some great offers for Christmas –more so than last year, when there were still supply issues. We also found more exciting new products, and picked up some new accounts, including Mood Bears, after the company’s success on Dragons Den. It was encouraging to see some suppliers bringing prices down, reflecting the reduction in shipping costs. We found some excellent new pocket money products from One for Fun, and some strong lines from MGA for the second half of the year. All we have to work out now is where we will put all this stock when it arrives…