LEGO Brand Stores are “surprisingly profitable”

The LEGO Group’s Vice President of Global Retail Development has revealed that LEGO Stores make a worthwhile contribution to the company’s profits.

During RetaiLEXPO19, Simone Sweeny, Vice President of Global Retail Development at the LEGO Group, has revealed that the LEGO Brand Stores make money for the company. It is counter intuitive to conventional wisdom, which is that flagship stores are there to promote brand rather than always turn a profit.

While Sweeney acknowledged that regular LEGO Stores make more money, even the flagship stores turn a profit. LEGO Store Leicester Square, London regularly hosts product launch events and a new store is soon to open in Shanghai. In terms of profitability, she said the LEGO Group has been “very positively surprised” with how quickly the stores had started to turn a profit, Essential Retail reports.

“We are beginning to see that the experience and the brand investment is not coming at the cost of the commercial, quite the opposite, it is fuelling it,” she explained. “That is one of the differences we are seeing now in this new world of bricks and mortar versus an e-commerce-based retail experience. It is almost counter intuitive to what we are hearing.”

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Graham was the Editor up until November 2020. He has plenty of experience working on LEGO related projects. He has contributed to various websites and publications on topics including niche hobbies, the toy industry and education. Follw Graham on Twitter @grahamh100.

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