Date shows that Amazon will become the UK’s biggest toy retailer by 2020 as the toys and games market is projected to grow to £4.9 billion.
Research by GlobalData provides figures showing that 16.2% increase will see the toys and games market in the UK increase to almost $5 billion by 2020, with Amazon overtaking Argos as the UK’s largest toy retailer.
License! Global reports the new data:
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.”
The construction toy category, that includes the LEGO brand, does not get a specific mention as being part of the growing market. Of course the shift in shopping habits will certainly impact the LEGO Group, as customers seem to expect the discounts offered by Amazon as standard.
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.
The growth in electronics and digital toys is unsurprising, with LEGO CEO Niels B. Christiansen suggesting that the LEGO Group will continue to look at incorporating new technology into the company’s product range.