Toy & Hobby Stores

Toy & Hobby Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate physical stores that sell new toys, games, and hobby and craft supplies; some also sell products online. Major companies include Gamestop, Hobby Lobby, and Michaels (all based in the US), as well as Città del Sole (Italy), Hamleys (UK), LEGO Group (Denmark), and Toyworld (Australia).

COMPETITIVE LANDSCAPE

Competition from big-box retailers (notably Walmart and Target), growing online toy sales, and changes in the way children play in the Digital Age are posing challenges to traditional toy retailers. Toy and hobby stores compete with multiple retailers offering similar products, including mass merchandisers, consumer electronics stores, and fabric and sewing goods stores. Brick-and-mortar toy stores are losing market share to online toy retailers that offer lower prices and fast or free shipping.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include toys, games, and hobby and craft supplies, which account for about 60% of the industry revenue. This is followed by toys, including wheel goods for about 40%. Other products include decorative accessories, hobby goods, and craft supplies. Among traditional toys, key categories include outdoor and sports toys, infant and preschool toys, and dolls. Toy stores may provide assembly or delivery services. Hobby stores may offer classes, known as "how-to" seminars, and picture framing or floral arrangement.