Bumper week for toy retailers though sales appear to be down

Despite Christmas being largely considered over by some, this last week in the run up to Three Kings is one of the busiest times for the toy retail sector in Spain.

Historically, many parents leave gift shopping to the last minute in Spain, which results in a total of 22% of Christmas spending on these items being concentrated between January 2 and 5. In fact, the 4th alone accounts for 6% of all seasonal toy sales.

However, December is the prime time for the sector. To date, the average expense this month has been 57 euro, a very relevant figure if we take into account that the average annual expense will be about 75 euro.

This is clear from an analysis of the activity of the main toy retail chains. The study, carried out by Fintonic through OpenInsighs, its division specialised in open banking and data analysis, is based on real and anonymous information from electronic transactions of more than 95,000 Fintonic users, aged between 18 and 65 years and residents throughout Spain.

In the absence of completing the sales campaign, the first data point to a decrease of close to 9% in toy sales this Christmas. A fall that the main retail chains blame unevenly. On the one hand, Toys R Us and Juguetilandia manage to maintain average spending. On the other hand, brands such as Drim, Juguettos and Toy Planet experience decreases of between 4% and 8%.

The evolution of sales also differs depending on the consumers’ place of residence. The drop in average spending in 2023 is especially pronounced in La Rioja, with 19% less; and in Asturias, where it fell by 14%. Castilla y León and Navarra, with 8% and 7% less, respectively, are other areas where spending on toys is contracting.

Leaving aside large stores and e-commerce platforms, the sale of toys through retail is led by the Juguettos chain, with a market share that exceeds 36.7%. It is followed by Drim, with 17%; Toy Planet and Juguetilandia compete in third position with 9.2% and 7.1%, respectively. Toys R Us, in last place and with 5.5% of the market, accuses the economic problems it has suffered in recent years.

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