David Middleton, Managing Director of Midco Toys, Midco Toy Planet, and Freak Treat checks in with insights from the UK in this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable. Middleton also serves as a member of the Toymaster Selection Committee and frequently visits the U.S. to scope out new products and trends. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!

From left to right: Big Kids? Midco Toy Planet’s David Middleton, Rick Derr of Learning Express, and The Toy Book Editor-in-Chief James Zahn strike a pose at Learning Express in Lake Zurich, Illinois.

The Toy Book: Last year, you visited the U.S. to share data and experiences between Toymaster and Learning Express. What were the biggest differences you identified between specialty toy retailers in the U.S. and the UK?

David Middleton: In the past, the U.S. always went to market first with most product launches. This isn’t actually the case anymore and we are, with the odd exception, seeing trends and launches pretty much at the same time. The UK is much smaller than the U.S., which often means ranges are smaller and sometimes products are not always available.

This had me looking at U.S. toy retail with rose-tinted glasses, thinking it would be easier with more products, more suppliers, and potentially earlier launches. I was quick to discover that getting access to large companies in the UK like Hasbro, Mattel, Spin Master, and Jazwares is much easier than in the U.S. We have direct accounts with all leading toy suppliers and this seems to be something that we take for granted as American indies struggle and often don’t have a direct supply from the big guys making it hard to compete with the big-box stores.

Because of our easier access to big brands and leading suppliers, I think this makes UK retailers more complacent and U.S. retailers seem far more proactive in looking for new and exciting products and trends. Learning Express seems to be exceptionally good at this leading the way with fidgets in 2020 and Rainbow Loom bands before that.

Related: The 2023 Edition of The BIG Toy Book is Here!

Combining easier access to the big suppliers and the proactivity of always looking for the next craze or something new and exciting you could create the perfect independent toy store.

Finding a niche in the U.S. seems to be much more difficult. In our business, we are hot on the latest toy releases and crazes but also hot on the tween and kidult market. In the States, there are far more comic book, anime/manga-type stores popping up in malls. These stores join Barnes & Noble, Hot Topic, Spencer’s, and others in going after on-trend licenses.

Source: Midco Toy Planet

TB: What were some of the biggest wins for your stores last year? What products or categories performed exceptionally well?

DM: We have had an exceptional year and since 2019 have doubled our inventory turnover. This came from moving our two stores into bigger locations and both within shopping malls. Our Derby store is in the ninth biggest shopping center in the UK and sees massive foot traffic. We are very driven by the latest crazes and trends. Our business in 2022 saw massive success with Funko with Funko Pop! being a massive category for us. Stranger Things 4 was massive here in the UK and the Funko range saw massive success. Anything related to Eddie Munson or The Hellfire Club was successful. We even branched out into T-shirts, posters, and badge packs.

LEGO is a massive part of our business and 2022 was no different. We saw growth with LEGO this year predominantly in kidult-focused products and those aimed at older kids. Star Wars, Marvel, LEGO Ideas, Technic, and Speed Champions were the real winners.

Pokémon is again a backbone of any independent toy store here in the UK and had another storming year. Seven of our top 10 best sellers for volume this year were Pokémon Trading Card lines. We saw queues outside our stores for the Pokémon Go Trading Card launch and for other major releases throughout the year.

Anime and Manga products really came into their own this year with the real winners being Demon Slayer, Jujitsu Kaisen, and My Hero Academia. Anime and Manga have seen a massive rise coming out of the pandemic, with Crunchyroll and Netflix making access to the content so much easier. We are seeing new faces in stores looking for products all the time.

The fidget category seems to be here as a mainstay. What started with a craze seems to be here for good. Nee Doh and other fidget items, including Crazy Aaron’s Thinking Putty and the UK’s own Slime Party UK have performed extremely well for us this year.

Gabby’s Dollhouse has been the standout preschool license for the year. The actual Dollhouse itself with a £79.99 retail has been a bestseller all year and was the most sought-after item this Christmas. When we had stock, social media posts led to queues outside the store with people trying to get the hot Christmas item for their kid.

Squishmallows again has had an awesome year and we have seen a lot of success with the brand despite a massive influx of products compared to the 2021 shortage here in the UK.

Midco Freak Treat opened in January 2023. Source: Midco

TB: In January, following the success of Midco Toy Planet, you opened a third store: Freak Treat. How does this concept differ from your other stores?

DM: Freak Treat is not your average, everyday, independent toy store. This is very much aimed at tweens to adults. After seeing success in more grown-up, non-kid-related products and licenses, we decided to expand more into them.

We want this store to be very much the anti-kids independent toy store. We have a massive focus on horror, anime and manga, Funko, collectibles, and Loungefly products. We’ve thrown in some heavy metal music pumping loud in our store and we’re stocking some music and band-related merchandise.

With so much success with these types of products in our other stores, we saw an opportunity to expand. We’ve moved these products from our other stores into the Freak Treat concept to create two, distinct identities that will allow expanded ranges in both.

Freak Treat is a store for emo, goth, and alternative kids and tweens. We saw the market moving, so we were the first to move with it here in the UK on an independent level.

TB: How important is the kidult market in the UK?

DM: When doing 2023 previews with some of the major toy manufacturers, I was amazed at what percentage of their business is being pitched for kidult. Back in 1995, when Hasbro relaunched Kenner’s Star Wars brand with Power of the Force 2, people were collecting, but back then it was almost frowned upon as being weird and it was never acknowledged as an actual market. But in 2023, it’s normal for adults to collect toys and the manufacturers are getting on board with it. It does worry me that companies will flood the market with products and make them too accessible. People like the thrill of the chase and the joy of the hunt. If this stuff is available everywhere and there are loads of it, people will lose interest.

I think Funko has had a massive influence on these decisions. Seeing the success of Funko Pop! since its launch all those years ago. Other companies want a piece of the action.

Kidult is a massive part of my business and was before “kidult” was even a thing. We have always catered to the older kid, tween, and adult collector. This started back in 2002 and has seen great success with products and licenses aimed at this market over the last 20 years. I remember the launch of Marvel Legends with Toy Biz, the McFarlane Toys’ Matrix range that launched with the second movie, and NECA’s Alien Vs Predator being very successful.

Sometimes I think adults want to collect the same things kids are buying and there is no need to have a special “collector’s” range. Pokémon and Squishmallows are prime examples.

TB: What is the biggest challenge facing specialty toy retailers in 2023, and how will you approach it?

DM: The biggest thing here in the UK is the cost of living crisis. We have all seen bills for general amenities rise, sometimes by double. This is constantly on the news and sending negative vibes out into the masses. Before this, it was the Russia-Ukraine War, COVID-19, and Brexit. There is always something in the news to put a damper on life.

But touch wood so far, all of the above affected us very little or not at all. At Midco, we have our fingers on the pulse, and being independent we can move very quickly and make changes and decisions at a drop of a hat. If it starts snowing we have sleds delivered. In a heat wave, we get pools and water blasters.

Here in the UK, I think the effect of the global pandemic made people recognize and appreciate independent businesses. The “shop local” mentality seems to be on people’s minds. We are very driven at Midco by low retail, sub 30 pounds price points. With such high footfall locations, we are very much about people in town shopping buying either on impulse or to keep their kids happy whilst shopping. We leave the higher ticket items to the nationals.

An event at Midco Toy Planet | Source: Midco

TB: What are your overall predictions for the state of the toy industry — and toy retail —  this year?

DM: Every year the toy industry moves faster and faster. Social media and the TikTok generation mean that kids want products now. They see a trend and they want it. The big-box national chains cannot keep up with these trends. I see the state of the independents becoming stronger and stronger because of the ability to make snap decisions. 

Also, the rise of streaming services and free content providers means kids can watch whatever they want whenever they want. Again a massive benefit to an indie retailer who can spot a trend and jump on board.

David Middleton picks up The Toy Book’s 2023 edition of The BIG Toy Book at ToyFest in Las Vegas.

I see the big-box national chains becoming less and less relevant. They will always drive volume but I see independent and specialist stores on the rise. 

I think the industry is strong, and an influx of toy-related movies this year could see a comeback of the cinema. There is so much content out there to inspire new products, and social media and TikTok mean that toys can go from unknown to massive overnight. Look at fidget spinners!

I live and breathe toys and I’m excited for 2023. There’s so much to go after!


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

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.

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