Toy Retailing in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: July 2024
SIC G47.650Revenue
£1.8bn
Past 5-Year Growth
Profit
£XX.Xm
Employees
13,718
Businesses
1,262
Wages
£XXX.Xm
Toy Retailing in the UK industry analysis
Over the five years through 2024-25, toy retailers' revenue is set to inch downwards at a compound annual rate of 2.8% to £1.84 billion. At the same time, profit has been eroded by high competition from online-only retailers, big-box stores, supermarkets and video games (which pull away children's attention). Other challenges – like rising inflationary pressures and the high cost of importing goods, especially from China – have also eaten away at profit. The imbalance in negotiating power between small and big toy retailers means that profit is often higher for prominent retailers that can get lower wholesale prices (think Smyths, The Entertainer).
Trends and Insights
- Company collapses shrink the market. High-profile retailers like Toys “R” Us and Mothercare have shuttered their shops amid faltering sales, with competition from big-box stores, supermarkets and online retailers proving too much for them to handle.
- Adult demand for toys creeps upwards. Many millennials and members of Gen Z are trying to hold onto their youths through nostalgic toys. Alongside this, COVID-19 drove a spike in sales of games and puzzles to older people.
- Toy stores are concentrated in London and the South East. These are the two most populous UK regions, which means huge potential customer bases. They’re also the most affluent regions, so people have more money to direct towards toys.
- Price competition often drives consumers’ toy buying decisions. Toy stores’ prices are often higher than elsewhere, like online and in supermarkets, and they’re struggling with these competitors drawing away demand.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.8 % over the past five years, to reach an estimated £1.8bn in 2024.
Trends and Insights
Prominent collapses shrink the industry
- World-famous toy retailers have left the market – notably Toys "R" Us in 2018 and Mothercare in 2019. Soaring competition from external businesses like supermarkets and online-only retailers ate away at their sales and ultimately forced them to close.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
The need for convenience keeps external threats strong
- Acting as a one-stop shop for many people, supermarkets and online-only retailers are the main threat to toy retailers.
Biggest companies in the Toy Retailing in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Smyths Toys UK Ltd | 660.2 | |
The Entertainer (Amersham) Ltd | 208.9 | |
LEGO Company Ltd | 133.8 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Toy Retailing in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Infant, toddler and preschool toys, Outdoor and sports products and Dolls. Infant, toddler and preschool toys is the largest segment of the Toy Retailing in the UK.
Trends and Insights
Outdoor and sports products aid healthy physical and psychological development in children
- Outdoor and sports toys include bat and ball games, swings, slides and climbing frames. Parents buy outdoor and sports products to improve their children's physical and psychological health.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Supermarkets in the UK
- Department Stores in the UK
- Computer & Gaming Product Retailers in the UK
Complementors
- Sporting and Outdoor Equipment Retailers in the UK
International industries
- Hobby & Toy Stores in the US
- Hobby & Toy Stores in Canada
- Toy and Game Retailing in Australia
Table of Contents
About this industry
Industry definition
Companies in this industry retail toys through their physical stores and frequently use online portals. They actively engage with customers both in person and digitally, catering to a wide range of toy preferences.
What's included in this industry?
Outdoor and sports productsElectronic and interactive toysArts and craftsGames and puzzlesInfant, toddler and preschool toysDollsCompanies
Smyths Toys UK LtdThe Entertainer (Amersham) LtdLEGO Company LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
APPINTERACTIVE TOYSTOY INFLUENCERIndustry Code
SIC 47.65 - Toy Retailing in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Company collapses shrink the market. High-profile retailers like Toys “R” Us and Mothercare have shuttered their shops amid faltering sales, with competition from big-box sto...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Adult demand for toys creeps upwards. Many millennials and members of Gen Z are trying to hold onto their youths through nostalgic toys. Alongside this, COVID-19 drove a spik...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Toy stores are concentrated in London and the South East. These are the two most populous UK regions, which means huge potential customer bases. They’re also the most affluen...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price competition often drives consumers’ toy buying decisions. Toy stores’ prices are often higher than elsewhere, like online and in supermarkets, and they’re struggling wi...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Smyths boosts its market share through acquisitions and partnerships. It’s bought quite a few companies recently, including some in Europe. Collaborations, including with maj...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Smyths Toys UK Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Entertainer (Amersham) Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of LEGO Company Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Smyths Toys UK Ltd, and factors influencing its performance in the industry
- Description and key data for The Entertainer (Amersham) Ltd, and factors influencing its performance in the industry
- Description and key data for LEGO Company Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Online spending surges, putting pressure on toy retailers’ sales. People can easily browse online for the best prices, with online platforms like eBay and Amazon posing the b...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases take up the bulk of revenue. This complies in almost all retail industries – retailers need to buy products to sell on to customers. At the moment, inflationary pre...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Toy Retailing in the UK industry in United Kingdom in 2024?
The market size of the Toy Retailing in the UK industry in United Kingdom is £1.8bn in 2024.
How many businesses are there in the Toy Retailing in the UK industry in 2024?
There are 1,262 businesses in the Toy Retailing in the UK industry in United Kingdom, which has grown at a CAGR of 2.5 % between 2019 and 2024.
Has the Toy Retailing in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Toy Retailing in the UK industry in United Kingdom has been declining at a CAGR of 2.8 % between 2019 and 2024.
What is the forecast growth of the Toy Retailing in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Toy Retailing in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Toy Retailing in the UK market in United Kingdom?
The biggest companies operating in the Toy Retailing market in United Kingdom are Smyths Toys UK Ltd, The Entertainer (Amersham) Ltd and LEGO Company Ltd
What does the Toy Retailing in the UK in United Kingdom include?
Outdoor and sports products and Electronic and interactive toys are part of the Toy Retailing in the UK industry.
Which companies have the highest market share in the Toy Retailing in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Smyths Toys UK Ltd.
How competitive is the Toy Retailing in the UK industry in United Kingdom?
The level of competition is high and increasing in the Toy Retailing in the UK industry in United Kingdom.
