Analysts predict that the toy construction market, dominated by the LEGO Group, will be back on track in 2017 after a disappointing 2016.
Flat US sales in 2016 led to a number of business articles focussing on damage limitation and how CEO Bali Padda might make changes to improve the company’s outlook. Toy News reports that the research analysts Euromonitor expect the construction category to return to previous levels of success when the 2017 figures are in, with the explanation particularly interesting.
Euromonitor’s toys and games analyst, Matthew Hudak has suggested that the reason for drop has stemmed from two conditions.
If the retail expert is correct, then the expansion of the LEGO brand beyond construction is reaching the point at which one section finds itself competing with another, something that is perhaps inevitable of the LEGO Group is determined to expand into different categories.
Whether the boost will be enough to hear more positive noises from the LEGO Group remains to be seen and will largely depend on whether the upswing is felt in the US market.