Toys “R” Flat Circana estimates total 2022 retail

Transcript:Toys “R” Flat Circana estimates total 2022 retail:
Toys “R” Flat Circana estimates total 2022 retail sales for the US toy market were $40.0 billion, or a 4.7% YOY increase; however, more specific research from Circana, representing 76% of the market, shows $29.2 billion in total sales or a 0.2% YOY decrease. The combination of inflation and boosts to toy sales during 2020 and 2021 when families had thousands in stimulus dollars depressed today’s market. Circana reported 2022-unit sales decreased 4% YOY while the average selling price increased 3% YOY. A positive sign was the 8.1% increase in retail sales at “hobby, toy and game stores” (NAICS 45112) during Q4 2022 compared to Q4 2021, according to the US Census Bureau; however, sales at those stores were flat during the first half of 2023 compared to 2022. Toy Trends for the Holidays The Toy Association’s annual Toy Trends & Products Review revealed adults, seniors and children 12 and older are discovering the value of play. The association expects more tweens and teens to buy collectibles and tech toys, driven by social media engagement. Toy consumers are also attracted to toys that teach social responsibility, diversity and sustainability and the manufacturers that have made this practice part of their company/corporate culture are benefiting. More science, technology, engineering, arts and math (STEAM) toys will likely be 2023 holiday gifts. The National Geographic Microscope Science Lab and LEGO CITY Lunar Space Station are two of 25 receiving official approval from the association. Early Insights for Holiday Shopping Although there are only a few early forecasts for 2023 holiday shopping and spending, living with inflation for many months will compel even more shoppers to look for special offers, discounts and product bundling. This trend is reflected in the recent Nfinite Holiday Shopper Report, in which 66% of surveyed consumers said they would be actively seeking product discounts, 56% are more likely to shop in discount stores and 42% will shop during specific sales events. A June 2023 MediaPost survey of 490 moms found 31% of them said they will start holiday shopping during August and 35% during September. Almost all of them (94%) will be using a mobile device for the convenience of brands’ and retailers’ apps. More Toy Shoppers’ Insights Provoke Insights’ Spring/Summer 2023 Retail Insights Report mirrors the forecast for less holiday spending as 26% of the surveyed consumers said they had purchased toys during the last month but 21%