Play by rules: Revenue will grow slowly as competition from online retailers mounts

The Hobby and Toy Stores industry in Canada is characterized by a large number of small, privately held companies, the majority of which have fewer than 10 employees. Retailers mostly sell discretionary goods, and as a result industry revenue tends to mirror somewhat the overall economy. Over the five years to 2017, the industry has rebounded in line with the strengthening economy, as rising disposable income has bolstered industry performance. Led by continued growth in consumer confidence and disposable incomes, industry revenue will likely also increase in the five years to 2022. Armed with deeper pockets, consumers are expected to increase expenditure on toys, while the ageing population will likely increase spending on various more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Pressure from department stores will continue to suppress revenue growth
  • Large discount department stores and mass merchandise retailers have emerged as leading retailers
  • The baby-boomer demographic is anticipated to account for an increased share of industry revenue
  • Industry Report - Industry Investment Chapter

    Hobby and toy stores are highly labour intensive. A relatively large share of human input is required for a store's daily operations, including management, marketing, register operations, inventory stocking, managing shelves and customer service. As a result, the cost of labour within this industry is relatively high, leading to a relatively low level of capital intensity. For every dollar industry operators spend on labour, only about $0.06 is spent on capital assets.Despite this industry's high reliance on labour, some expenditure on capital is also required. Hobby and toy store operators must invest in land and buildings, fixtures and fittings, cash registers, point-of-sale (POS) systems, storage units, distribution infrastructure and other equipment. Ove...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

  • Attractive product presentation
  • Having an exclusive sales contract
  • Having a cost effective distribution system
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and Number of children aged 19 and younger in the Hobby & Toy Stores industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Hobby & Toy Stores Industry?

    This industry sells a broad range of toy and hobby goods, such as traditional dolls and toys, electronic toys (including video and electronic games), board games and hobby kits. Online retailers and operators that sell used toys and hobby goods, art supplies and collectors’ items are not included in this industry.

    Industry Products
  • Electronic toys and games
  • Traditional toys
  • Games, puzzles and educational toys
  • Hobby supplies
  • Industry Activities
  • Retailing toys
  • Retailing traditional and electronic games
  • Retailing magic supplies
  • Retailing hobby goods
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • Number of children aged 19 and younger
  • Leisure time
  • Total retail sales

  • Current Performance
  • Changing industry structure
  • Toy trends
  • Chart: Revenue Growth

  • Industry Outlook
  • More income, more technology
  • Competitive environment
  • 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 in Canada

  • Key Selling Industries
  • Toy & Craft Supplies Wholesaling in Canada
  • Toy, Doll & Game Manufacturing in Canada

  • Products & Services
  • Traditional toys
  • Electronic toys and games
  • Hobby supplies
  • Games, puzzles and educational toys
  • Chart: Hobby & Toy Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 54
  • Consumers aged over 55
  • Consumers aged under 24
  • 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
  • Depreciation and marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hobby & Toy Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hobby & Toy Stores Industry

  • Industry Globalization
    Toys R Us, GameStop Corp., Michaels Stores,
  • Table: Toys R Us - financial performance
  • Table: GameStop Corp. - financial performance
  • Table: Michaels Stores - 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • Tweens
  • Children between the ages of eight and 12.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hobby & Toy Stores market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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.