Toys are busy clearing out during the holiday season in the United States! This sub-category is growing against the trend

It is learned that on December 20, a research report released by Jefferies analysts showed that during this year's holiday season, the toy inventory of major offline retail stores in the United States was generally sufficient and the discounts were strong. While retailers were busy clearing inventory, the demand for children's toys by "kidults" grew strongly.

Toy sales are sluggish, and the holiday season has turned into clearance season

Jefferies analysts said sentiment in the U.S. retail toy market remains poor, and sales may not be as good as usual for toy retailers in the final two weeks of holiday shopping. Retailers may need to see double-digit sales growth to clear excess inventory before next year.

Major giants are scrambling to boost holiday season toy sales. For example, Macy's began opening in-store toy shops in each store ahead of this holiday shopping season. Reports show that advertising and promotions will continue to play a role in achieving holiday acceleration.

Research shows that well-known brands have an advantage in this market segment, and popular toys such as Lego, Star Wars and Marvel are almost always sold out.

In addition, sales of action figures and toys related to movies and streaming shows were relatively impressive, but sales of traditional action figures were sluggish. The worst performers were board games, puzzles and Nerf products, which also had the biggest discounts.

Inventory has been a major challenge for U.S. retailers. Last year, supply chain issues led to out-of-stocks becoming a major problem for toy sales. As supply chains loosened, many companies had excess inventory, leading to deeper discounts as demand weakened.

The rise of the “kidults” consumer group has become the biggest driving force for toy sales

According to NPD, two things are keeping the toy industry afloat right now: inflation and a consumer group known as "kidults."

"Kidults" refers to consumers aged 12 and above who are keen on buying children's toys. According to data from NPD Group, "kidults" account for a quarter of all toy sales each year, worth about $9 billion, and are the biggest driver of growth for the entire industry.

While sales of board games, puzzles, and play sets surged across the board during the pandemic, sales fell 3% in the first nine months of 2022. Rising toy prices helped offset those losses, as sales revenue increased 3% during the period, NPD reported.

Kidults are fans of cartoons, Star Wars and Legos, and are keen buyers of toys generally considered kid-friendly, such as action figures, Legos and dolls. In recent years, toymakers such as Mattel have created product lines specifically for these consumers.

At a time when toy sales are sluggish, "kidults" are an important sales driver for the toy industry, and they are often willing to spend more money than other people for these toys.

Editor✎ Ashley/

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