Letter from America - Rick Derr

Expanding horizons

After 20 years working at A.C. Nielsen/D&B Research Company, Rick opened the first Learning Express Toys franchise in the Chicago area in 1996, and then became a sub-franchiser, opening nine more stores. Although leaving the corporate environment behind, he has combined his expertise in data and numbers with a passion for the toy retail space. This month Rick updates Toy World readers on the latest from indie toy retail in the USA, as well as upcoming trade shows and trips.

Visit to UK

Exciting news - the Toy Man is coming to the UK! I am delighted to have been invited to the Toymaster show this month. The event will be held in Harrogate (a lovely part of North Yorkshire) from Tuesday 16th- Thursday 18th May. My passport is ready, and I am looking forward to meeting up again with my friends, Toymaster’s Paul Reader and David Middleton of Midco Toys. My goals are to learn from Toymaster members what trends are going on in Europe currently and what they foresee in the future, as well as find out more about how Toymaster supports its members. Finally, I’m very excited to be able to network amongst people that love toys as much as I do. I also hear this time of year is a beautiful time to visit and that the countryside in the North of England is quite something. See you all soon.

Easter sales for US indies

As I write this article, the Monday after the Easter holiday, reports are positive around the country. Here in the US, Easter is our largest toy sales period until Thanksgiving. While not quite reaching the highs of 2021, we are seeing strength holding volumetrically against not only pre-pandemic levels, but against 2022 as well. I estimate this increase to be in the 30-40% range – which is having a positive impact on our indie stores here in the States. Top sellers were Squishmallows and plush, scented and textured slimes, Lego, Pokémon (Scarlet and Violet) and sensory toys (mostly those with a soft feel/touch). Foot traffic has been strong and so far, consumers are still spending, with average transactions in March-April reaching $52, compared to $47 last year.

Welcome Nano Pods from Wow! Stuff

We have just received the new Nano Pods here in the US, and I love them. Great quality, price, on trend and collectible. But the real impact that I see is the partnership with Mattel to make distribution happen widespread across the US. This is a brilliant move, and I hope to see more such partnerships secured in the future, so that we indies can curate a global selection of the toys that kids (and kidults) want.

MESH update (Mental, Emotional, Social Health)

The distress continues in the US for our kids, with mass shootings on the rise, the banning of books, social media controversy and much more. The toy industry, particularly the ASTRA toy association, must rally behind this initiative which I discussed last month. Later this year, we will see training of store personnel, speakers educating us at conventions and shows (see the ASTRA Marketplace in June) and hopefully more publicity at the New York Toy Fair in September. The key objectives are to help kids build skills so they can deal with distress in their lives in an open and positive way. These skills include problem solving, self-regulation, perseverance, self-advocacy, adaptation, cognitive skills, conflict resolution and communication strategies – and I have no doubt that toys and the toy industry can really help.

How is our new Fashion/Tween section doing?

As previously mentioned, this year we returned from a January trade show and immediately implemented a new store-in-store concept. I promised to update you, and the results are encouraging:

3 weeks 1/15/23 - 2/10/23 - $2,078 retail sales

9 weeks 1/15/23 - 3/10/23 - $9,108.

16 weeks (to end of Easter) - $18,509

Top performers have been Kedsie Crossbody bags, bath bombs, hair products, nylon patches and self-care products. This is a learning curve, and we are already looking forward to adding more new items and discontinuing products that didn’t work. It will be a constant focus throughout 2023. So far, customer reaction has been positive, as well as sales.

Trade shows

Momentum is gaining for trade shows. This year has already seen good attendance at Dallas, Atlanta, Las Vegas and New York Gift show. We will be visiting ASTRA Marketplace (June 11-14th), the Learning Express Show (June 2628th) and Toy Fair in New York (September 30th-October 3rd).

I heard someone comment that “show dates should revolve around the new product cycle of vendors,” which I thought was astute as far as indie stores are concerned. When we go to a show and see an item of interest, we generally want it right away. Trade shows are most beneficial when product is ready to ship. Yes, we like to see what’s coming, but because we act quickly, instinctively and aggressively, we want it now. I want to be first. So, note to trade shows - work with vendors and develop shows around product launch dates, or urge exhibitors to have stock ready, rather than sticking to a date on the calendar or because you always did it that way.

Till next time, when I’ll be reporting on my visit to Toymaster and the UK.