Special Feature - Toymaster

Toymaster holds first supplier meeting since 2017

The meeting gave Toymaster the opportunity to update suppliers on what the retail group has been doing, and how they can maximise their business with the members.

A host of toy companies travelled to Swindon last month to attend the first Toymaster supplier meeting for six years. Toy World was honoured to be invited to join the meeting, which outlined Toymaster’s strong trading performance and highlighted opportunities for suppliers to engage further with the group and its members.

Toymaster now has 136 members, which operate a total of 280 stores across the UK and Ireland – plus one store in Gibraltar and two in Malta. These stores represent a diverse selection of specialist independent retailers, including single stores, multi-store groups, seaside outlets, garden centres and online traders. Seven new members signed up in 2022, and another new member has already been welcomed this year. Almost forty Toymaster members have been with the group for over 25 years, which illustrates the consistency of the business.

Toymaster’s recent trading record has been exemplary; in 2022, when the total toy market declined by 3%, Toymaster members’ sales grew by 14% versus 2021, and was up by 22% when compared to 2019, the last ‘normal’ trading year. 76% of Toymaster members traded up last year, and that trend is continuing this year; in Q1, when the total market was deemed flat, Toymaster’s sales increased by 10%.

The Toymaster business is also in a robust position financially, being entirely self-financing with a large amount of cash at the bank, zero debt and a growing net worth, which now exceeds £4m.

The retail group believes its individual members have many key strengths which are contributing to the group’s performance, including the ability to be reactive and flexible; being good at spotting trends; not being governed by a rigid buying calendar; product knowledge which is second to none and having a strong social media presence. Consumers looking to support local businesses post-pandemic is another trend that has very much worked in Toymaster members’ favour.

Toymaster members are also hugely supportive and collaborative, regularly sharing information and best practice to help their fellow members prosper.

As Paul Reader pointed out, Toymaster doesn’t sell own-label products and only works with brands, and he made an impassioned plea for branded suppliers to work closer with Toymaster to help deliver on its promise of helping its members to trade more profitably.

Closer working relationships and support to achieve a healthy margin mix were on Paul’s wish list for suppliers, as well as the opportunity to launch new ranges exclusively through Toymaster stores: as he said, “Collectively, the 280 stores of our members offer serious shelf space for brands at launch.”

Suppliers were also encouraged to support other key marketing initiatives, such as the Christmas catalogue – “our biggest and most powerful marketing tool” according to Paul – window displays and the Toymaster product hub. Next year will see the Spring catalogue disappearing, as Toymaster switches its Q1 focus to launching new products (which often arrive long before the catalogue is available), in-store merchandising, window features and digital marketing.

Toymaster also confirmed that it has rejoined the Toy Retailers Association to help in its fight for business rate reform, ongoing energy support and its ongoing work to highlight toy safety issues, especially in the online channel. Paul also announced that the Toymaster FOB

programme for the UK and Ireland will be returning later this year, now that freight rates have come down and prices in the Far East are returning to a more stable level.

Summing up, Paul suggested that Toymaster is in a stronger position than ever: “Contrary to what you might read in some national media outlets, the Hight Street is vibrant and consumers love shopping at specialist retailers, valuing their expertise and personal service.”

Of course, there are challenges, not least online competition, which Paul acknowledges “isn’t going away.” Consumer confidence, business rates and the pace of change affect all retailers, but independent retailers are arguably at a greater disadvantage, given their lack of resources; unlike major accounts, there aren’t big teams to delegate to, the indies have to do it all themselves. And if they make mistakes – as every retail buyer can from time to time – it’s their own money that is at stake.

This makes it all the more crucial that toy suppliers support the independent channel to the best of their ability. The Toymaster head office team does a tremendous job coordinating marketing activity and building relationships with the supplier base, as it truly understands its members and all of their diverse needs. With the support of toy companies, the Toymaster team can help to ensure the continuing health and success of its members and the specialist toy retail channel, which can only be a good thing for the toy market as a whole.