Europe for $50 a Day

The European toy market is nearly identical in size to that of the U.S. but is largely unknown to many members of toy nation. To try and rectify that, the TIA has arranged with Andrew Dobbie of Gameplan Europe and me to conduct a series of four seminars on that market. 

Yesterday was the first in the series and we got off to a strong start with a discussion of the top 5 European markets.  As we reviewed the top retailers of toys in each of those markets,  I was struck by a sense of being in a parallel universe. It was as if the “five and dime store,” the catalog showroom and the hypermarket had never left the stage.

In the UK, the leading retailer is a catalog showroom chain. With a format that is identical to Best Products and Service Merchandise (may they rest in peace) the chain owns 22% of the United Kingdom’s market. In addition, Woolworth is still in existence. It’s that same variety store chain that many of us remember well if not fondly. Just as it was in the U.S., it is situated in downtown areas. Unlike the U.S., it continues to have a strong retail presence and is among the top five retailers in England.

An exciting format that never caught on in the US is the hypermarket. With some stores in excess of 300,000 square feet in size, they are the most powerful retailing force in Europe. 

For those who are specialty toy manufacturers, be assured that the independent toy store is still a major presence, particularly in Germany. There are some individual stores that do in excess of $15 million in sales per year and carry up to 85,000 (no, that is not a typo, I said 85 thousand) active toy sku’s.

As the global economy becomes more and more a part of our every day lives, it will be interesting to see how American toy manufacturers and retailers take advantage of markets that are so startlingly different yet so potentially lucrative.