Industry Analysis & Industry Trends
Continuing a trend from the past five years, independent hobby and toy stores will find it increasingly challenging to compete with mass merchandisers and department stores, which offer lower prices and convenience. Over the next five years, changing consumer preferences will create tough market conditions for industry operators, as children begin to demand more adult-focused products, like electronics and media players. Still, greater demand from baby boomers and increasing disposable incomes will benefit the industry... purchase to read more
Industry Report - Industry Investment Chapter
Hobby and toy stores are labor intensive, because of the relatively large share of human input required for a store's daily operations. Labor is needed for management and marketing purposes, as well as daily operations such as register operations, inventory stocking, managing shelves and customer services. As a result, the cost of labor within this industry is relatively high, leading to relatively moderate capital intensity. For every dollar allocated for labor, only about $0.27 is spent on capital assets.
Despite this industry's high reliance on labor, some expenditure on capital is also required. Such investment includes land and buildings, fixtures and fittings, cash registers, point-of-sale (POS) systems, storage units, distribution infrastructure and other equipment... purchase to read more