by SUE WARFIELD, president, American Specialty Toy Retailing Association (ASTRA)

We’ve learned a great deal over the past few years, but the biggest lesson of all is that we truly cannot predict the future or plan too far ahead. Flexibility is the key to success and specialty retailers have proven that they are very flexible and have the ability to pivot quickly.

The outlook for specialty toy retail in 2023 is bright! Last year, the fourth quarter gave us some insight into what this new year could hold for our industry. With December sales coming in greater than expected since many had their best year ever in 2021, the “shop local” movement continues, but the reasons why customers are choosing local retailers are changing. While the pandemic drove consumers to seek out their local retailers in 2020, other factors are keeping the “shop local” momentum strong.

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Marvin’s Toy Store in Crystal Lake, Illinois offers gift wrapping as a special perk of shopping locally in their store. | Source: Marvin’s Toy Store

THERE’S NO EXPERIENCE LIKE THE IN-STORE EXPERIENCE

While purchasing gifts from the comfort of your couch is appealing to some consumers, online shopping is not always a flawless experience. Issues with online purchases include potential product misrepresentation, difficult returns (often with additional shipping fees, annoying drop-off processes, and delayed refunds), and a lack of reliable delivery due to delivery service issues as well as unreliable stock availability.

The benefits of shopping in store — and shopping small — are numerous. Local businesses offer online ordering with in-store pickup or local delivery; individualized customer attention, whether over the phone, in-store, or online; gift wrapping (which is typically free); and easy returns. 

All of these factors and more show us that consumers have continued to appreciate their local retailers and choose to shop small.

CATEGORIES TO WATCH IN 2023

There are several key toy categories driving sales growth to watch for this year. Let’s take a look at some of the biggest sellers at the specialty level:

Toys for Kidults: Older kids, teens, and adults are looking at the higher-end items, including construction sets (especially large LEGO sets), puzzles with higher piece counts (1,000 pieces and up), and games to play with their friends. This trend is especially exciting, as it helps expand the market in toy stores that have seen age compression change their store traffic demographics in recent years. 

Comfort and Stress-Relief: Kids of all ages can benefit from toys that help relieve stress and anxiety. Plush continues to grow, and arts and crafts kits — including hands-on crocheting and knitting sets — are popular. Active play toys that help boost kids’ endorphins are also great to stock.

Tactile Play: While bubble poppers and fidget toys at impulse price points have dominated this category in recent years, the trend is waning and other tactile playthings are experiencing a resurgence, including slime and kinetic sand.

BRING ON THE INNOVATION

For manufacturers, the key to success this year is to bring original products to the market. And by that, I mean new products that are not just new versions of what’s already out there. Larger sets of the same type of construction products and travel or updated versions of the same brain teaser game just aren’t going to cut it with our ASTRA retailers. It’s time to think outside the box. 

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For the Marvin’s Toy Store crew based in Crystal Lake, Illinois, coming to work means having fun! | Source: Marvin’s Toy Store

For retailers, it’s all about staffing creativity this year. What does that mean? So many industries are facing labor issues and retail seems to be suffering the most. While some businesses are struggling with getting workers to return to the office, many can still consider the work-from-home (WFH) option for their employees. But a WFH model is not an option for retailers. Stores need to be open and have staff present. Retailers will have to become more flexible and creative in their scheduling and consider what incentives can they give to their staff to both entice them to work in the store and to retain them long-term. To help with this, ASTRA is working on a campaign called “Play is my Job.”

For those of us in this industry, when you tell someone what you do, how many times have you heard, “Wow, that must be a really fun job?”  To that, I answer a resounding “YES!” 2023 is looking very bright and we are ready to embrace it!

A version of this article was originally published in the 2023 edition of The BIG Toy BookClick here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!

About the author

Sue Warfield

Sue Warfield

Sue Warfield, president of the American Specialty Toy Retailing Association (ASTRA), has more than 30 years of experience working in the toy industry, including owning a retail store, being a sales representative, and working alongside her husband at a manufacturing business. Contact her: swarfield@astratoy.org.

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