Wednesday, 30 September, 2020

Lego: Toy retailer bets on shops despite toy market downturn

Impression copyright

Image caption

Lego main executive Niels Christiansen took around in 2017 right after profits skidded to a halt

Danish toy retailer Lego is betting large on actual physical merchants regardless of falling desire in the broader toy industry.

It designs to open up 150 branded shops all over the entire world in 2020, possessing opened the similar total final year.

Lego’s chief government, Niels Christiansen, informed the BBC that he “wished persons to get their arms on bricks and be a aspect of the manufacturer”.

The firm estimates that the world wide toy current market shrunk by 3% in 2019.

Mr Christiansen mentioned: “Some of the modifications in the retail landscape have place toy merchants beneath force… But we see the wonderful power of people receiving their hands on bricks.”

The company, which has 570 suppliers globally, has typically marketed its items as a result of third-party suppliers.

Its determination to open extra Large Avenue web pages comes regardless of a spate of retail closures.

The biggest casualty in the toy marketplace has been Toys R Us, which collapsed into administration in the US and British isles in 2018.

Impression copyright
South China Morning Publish through Getty Pictures

Impression caption

Lego’s 570 retailers around the world such as two flagship retailers in Beijing and Shanghai

Lego presently has 16 British isles merchants, but would not affirm if any of the new openings this calendar year would be in the British isles.

It mentioned 80 of its new shops would be positioned across China as it focuses on increasing its footprint in the state to 220 shops.

Mr Christiansen mentioned that none of Lego’s workers experienced nonetheless contracted the coronavirus soon after the outbreak emerged in China’s Hubei province.

Even so, its manufacturing plant in Jiaxing remained closed for a 7 days right after the Lunar New Calendar year in China on the information of the authorities. It has has given that reopened.

On Wednesday, Lego noted sales of 38.5bn Danish kroner (£4.5bn $5.7bn) for 2019, up from 36.4bn in 2018. Net revenue climbed 3% to 8.3bn kroner.

It marks a second year of revenue expansion after product sales fell at the family members-owned business in 2017.

Lego in figures

  • 70 billion Lego pieces are bought on a yearly basis in more than 130 nations around the world
  • 915,103,765 – the range of strategies to incorporate 6 two-by-four Lego bricks of the identical colour
  • Far more than 700 million Lego tyres are generated on a yearly basis
  • 18,800 Lego staff all over the globe
  • 3,400 – the number of distinctive styles of Lego styles
  • 570 Lego merchants around the globe
  • – Lego states there have been no products recollects because 2009

Resource backlink