Kevin Peachey
Cost of living correspondent
Getty Images
Squishmallows proved to be popular again
Toys sold for less than £15 accounted for nearly half of the UK market last year, as pressure from the rising cost of living continued to bear down on consumers.
Sales of toys and games were down 3.7% by value on the previous year, industry analysts Circana said, as parents tightened their belts and sought out lower-priced presents for children.
Despite the trend of adults increasingly buying toys and games for themselves, traders said overall sales had felt the impact of an “unsettled economic landscape”.
Retailers are increasingly pinning their hopes on collectables, appealing to adults and children, which are low in price but can prompt multiple purchases.
Falls since 2021 high
The Squishmallows Plush 8″ Assortment, which typically sells for about £8.50, retained its position as the top-selling item for the second year running.
Squishmallows became popular during the pandemic when people shared their collections on social media, and said that hugging the toys helped them to feel calmer and less anxious.
Toys costing less than £15 accounted for 47% of the market in value, and eight in 10 sales. Items costing less than £10 accounted for 28% of the market.
Alongside lower prices, parents are seeking better value, according to Melissa Symonds, executive director of UK toys at Circana.
That may mean rejecting the instant gratification seen during the unboxing craze of recent years, in place of toys that children return to play with regularly.
The British Toy and Hobby Association (BTHA) holds its 71st annual Toy Fair in London over the next three days, with hopes for a rebound in fortunes of the sector through innovation.
That will see further releases of more mini or micro collectable items, ranging from even smaller cuddly toys to stickers.
Stitch was one of the big sellers of last year
However, the sector may again be relying on adults buying for themselves as much as their children – with nostalgia and building sets such as Lego expected to sell well again next Christmas.
Ms Symonds said some couples were even giving each other Lego flowers on Valentine’s Day. The toy brick firm’s botanicals range was second only to Stitch character toys as the fastest growing trend of last year.
Ms Symonds said Formula One themed toys and sets were set to hit the shelves in greater numbers in 2025, driven (in more ways than one) by collectable cards and a new film starring Brad Pitt to be released later in the year.
Sales of toys and games saw a big lift during Covid as more families spent time at home during lockdowns, but sales have fallen since 2021.
A falling birth rate, the cost of living and fewer big hit film franchises have been blamed for hitting the market last year.
Kerri Atherton from the BTHA said: “These latest figures have undoubtedly been shaped by the current unsettled economic landscape which is impacting people’s spending across a wide range of consumer goods, including toys.
“However, it is promising to see there are pockets of increased spend across the UK toy sector.”
