Toys 'R' Us closure pushes up 1H18 toy sales - Analyst

Emotional response from parents and grandparents prompted them to buy more toys for their children.

The first half of the year saw a huge rise in toy sales brought about partly by the sadness parents felt over the closing of toy retail giant Toys 'R' Us.

This is according to market research company NPD Group, which revealed toy sales grew 7 percent to $7.9 billion through June. "It is likely that the Toys R Us news has kept toys top-of-mind for parents and grandparents when shopping for kids in general, benefiting both consumers and the industry," said Juli Lennett, the firm's senior vice president and industry advisor.

She further presumes that the closing of Toys 'R' Us back in June drew an emotional response from parents and grandparents, resulting in increased toy purchases.

Toys priced between $5 and $19.99, and robotic and interactive products were the best-sellers during the period. Collectible dolls such as LOL Surprise, Fingerlings and Soft'n Slo Squishies, which were popular in the past year, remain on the top of children's wish lists. Dinosaur- and unicorn-themed toys continue to among the strongest categories.

Lennett predicts that the trend will continue through the end of the year. "Existing toy retailers have announced they will be dedicating more space and carry more toys this holiday season both in-store and online," she said. "We're also seeing new store formats emerge that are more experiential, and we will have new toy retailers entering the space."

With the holidays quickly approaching, volume exporters can expect a high demand for toys. The rapid growth of technology is expected to help in the creation of innovative toys that will not only entertain children, but also develop their intellectual and cognitive skills.