Not playing around: Competition will intensify and subdue growth as disposable income levels recover

Over the five years to 2016, the Hobby and Toy Stores industry has struggled to fully rebound from recessionary lows, even as the overall economy strengthens. Competition from discount department stores and e-commerce channels has absorbed the increased demand for industry products by offering low prices and a one-stop-shop experience. Accordingly, discount stores have become the leading hobby and toy retailers during the five-year period. Despite the extremely competitive environment, the industry is expected to experience growth in the five years to 2021. Armed with deeper pockets, consumers are expected to increase their expenditure on toys and hobby supplies...read more.

Industry Statistics & Market Size
Revenue
$20bn
Annual Growth 11-16
2.9%
Forecast Growth 16-21
Profit
Employment
143,272
Businesses
21,722
What Our Customers Say

Industry Threats & Opportunities

  • Competition from discount department stores will limit growth, despite rising incomes
  • Due to their size, large companies are able to offer competitively priced goods
  • New electronic toys and advancements in product designs will help drive sales
  • Industry Report - Industry Analysis Chapter

    The Hobby and Toy Stores industry has crafted moderate revenue growth over the past five years. Operators in this industry retail a variety of toys and hobby goods, including dolls, electronic toys, games, hobby kits and craft supplies. Over the five years to 2016, industry operators steadily recovered from recessionary lows, in line with improving economic conditions. Even so, as consumer income rose, the competitive landscape intensified and operators both in and out of the industry fought to win over consumers. Competition from discount department stores and online retailers stifled industry sales and profitability, as lower-priced comparable products increasingly lured customers away from traditional industry operators. IBI...purchase to read more.

    Additional Insights for the Hobby & Toy Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hobby & Toy Stores Industry are

  • Having an exclusive sales contract
  • Stocking seasonal products
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and commerce sales in the Hobby & Toy Stores industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What is the Hobby & Toy Stores Industry?

    Operators in this industry sell a broad range of toy and hobby goods, such as traditional dolls and toys, electronic toys (including video and electronic games), board games, hobby kits and craft supplies. These goods are retailed to the general public after they are purchased from domestic and international manufacturers and wholesalers. Companies that primarily retail used toys, fabric and sewing supplies or children’s apparel and furniture are not included in this industry.

    Industry Products
  • Toys
  • Hobby, craft and art supplies
  • Games (including electronic and video games)
  • Industry Activities
  • Retailing craft supplies
  • Retailing hobby goods
  • Retailing magic supplies
  • Retailing toys
  • Retailing traditional and electronic games
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • commerce sales
  • Number of children aged nine and younger
  • Time spent on leisure and sports

  • Current Performance
  • Competitive landscape
  • Generation DIY
  • Chart: Revenue Growth

  • Industry Outlook
  • Improved incomes boost spending
  • Discount department stores to dominate
  • Consolidation and profit
  • Table: Hobby & Toy Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hobby & Toy Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Art & Office Supply Manufacturing
  • Athletic & Sporting Goods Manufacturing
  • Household Furniture Manufacturing
  • Motorcycle, Bike & Parts Manufacturing
  • Textile Mills
  • Toy, Doll & Game Manufacturing

  • Products & Services
  • Hobby, craft and art supplies
  • Toys
  • Other
  • Games (including electronic and video games)
  • Chart: Hobby & Toy Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 44
  • Consumers aged 25 to 34
  • Consumers aged 45 to 54
  • Consumers aged 65 and older
  • Consumers aged 55 to 64
  • Consumers aged 24 and younger
  • Chart: Major Market Segmentation for the Hobby & Toy Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and Utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hobby & Toy Stores

  • Basis of Competition
    InternalExternal
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hobby & Toy Stores Industry

  • Industry Globalization
    Michaels Companies Inc.Toys"R"Us Inc. Hobby Lobby Stores Inc.
  • Table: Michaels Companies Inc. - financial performance
  • Table: Toys"R"Us Inc. - financial performance
  • Table: Hobby Lobby Stores Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hobby & Toy Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hobby & Toy Stores Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of children aged nine and younger (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Age Compression
  • The phenomenon where children outgrow toys at a younger age than the target market, resulting in greater demand for more adult-like merchandise.
  • Do-It-Yourself (Diy)
  • A method wherein consumers personally create, build and/or design their own projects and products without the assistance of professionals.
  • Electronic Data Interchange (Edi)
  • The transmission of data between businesses from one computer system to another.
  • Tweens
  • Children between the ages of eight and 12 years.
  • Why buy this report?

    IBISWorld’s Hobby & Toy Stores Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Hobby & Toy Stores industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hobby & Toy Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hobby & Toy Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hobby & Toy Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear