U.K. Toy Sales Shift Online

Amazon is also on track to overtake Argos as the largest toy retailer in the U.K.

EUROPE–The U.K. toys and games market is set to increase 16.2 percent to £4.9 billion in the next five years, according to U.K. research and consulting firm GlobalData.

GlobalData also reports that online sales will contribute to 84.1 percent of the total category growth for 2017-2022. And of those online sales? Amazon is currently on track to overtake Argos as the largest toy retailer in the U.K. by 2020, with 51.4 percent of toys and games shoppers visiting the site in 2017.

“Amazon has managed to improve shopper loyalty with its Amazon Prime services, and impressive range of toys and games,” says Molly Johnson-Jones, senior retail analyst, GlobalData Retail. “Prices on this year’s must-have toys are lower than its competitors, its range is unrivalled, and the convenience of its offering is market-leading.”

Delving deeper into the category, electronic and traditional toys will also support strong market growth over the next five years. Electronics are expected to hold 13.1 percent of the total toy market in 2022; while arts and crafts, construction toys and board games are projected to hold a total of 30.5 percent in 2022.

“Electronic toy growth is not changing the market yet, as older parents and grandparents still choose traditional toys over toys which bridge the interface between physical and digital play,” says Johnson-Jones. “However, as Millennials who grew up with digital entertainment start to have families, electronic toy sales will increase, and their simultaneous desire to do more ‘wholesome’ activities will mean that the strong growth of traditional toys will continue.”

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