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Toy Sales Continue Industry Wide Drop 5% After Third Quarter Sales Increases

By Blitz-Wing on Thursday, November 15, 2012



As we go further into the digital age, traditional toys continue to suffer. Toy makers, such as Hasbro, were encouraged by a strong September. However, Q3 numbers put the entire toy industry down 5-6%. Action figures seem to be taking the brunt of the decline, as children gravitate more to tablets. Toymakers blame the weak economy, which they claim has hampered R&D and thus prevented the industry from coming up with innovative new products. However, some toy fans may lay blame on details such as poor distribution or higher prices. What's your take on this?
Toy sales were down about 5 to 6 percent through the end of the third quarter, according to BMO Capital Markets toy industry analyst Gerrick Johnson. He expects sales will continue their negative trends in the coming weeks.

"The season got off to a nice, strong early start," he said. But recent sales have shown that the early burst of buying reflected sales being pulled forward into September and early October as parents took advantage of layaway programs to buy holiday gifts.

Read the full article at nbcnews.com and discuss below.

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