September is a challenging month for the toy industry, covering four separate marketing seasons. Grasping these seasons is essential for toy retailers aiming to boost their profits. Contrary to what many say, toy sales rarely occur organically; it is artificial, coming from marketing campaigns. Recent late August data confirms this.

Four Critical Toy Sales Trends Happening Now

Father's Day Ripple Effects

Father's Day's impact extends far beyond the day itself, generating sales for quite a while. What happens is that Dad receives a game as a gift, the family bonds with it, and other families learn about it through word-of-mouth marketing, wanting these games too. Not only that, but as children enjoy playing games with Dad, they actively request similar toys for themselves. Savvy retailers should examine toy products that align with popular Father's Day gifts. Based on last year, board games, building sets, and interactive toys have consistently shown increased sales now.

Strategic Timing Considerations

Major toy suppliers are currently testing their Christmas product lines to gauge consumer response before placing massive holiday orders. What retailers are now seeing are experimental Christmas toys released in limited quantities to measure market reception. Suppliers want to identify which products to push for the holiday season. While this presents learning opportunities about upcoming trends, you should exercise caution in getting too much involved. If the suppliers do not push them over Christmas, they will not sell.

Weather

Australian families are moving from winter indoor activities to spring outdoor play, though weather patterns remain unpredictable, especially in Melbourne. This shift creates two immediate required actions. This is your final opportunity to clear winter stock at attractive prices, and we must now shift our focus toward outdoor toys.

Educational Focus

Parents are increasingly looking at the educational benefits when choosing children's toys. They want toys that do learning with entertainment. Most importantly, they are prepared to pay higher prices for toys they see as educational tools rather than just for fun.

Current Best-Selling Categories

LEGO Dominates Market Performance

LEGO products are currently topping the toy sales charts, with Minecraft-themed sets performing strongly. This success comes from LEGO's unique position at the crossroads of education and entertainment. Parents see LEGO as tools for educational growth. Kids view them as fun and engaging. This dual appeal sustains steady sales across various price ranges and age groups.

Arts and Crafts

Drawing and art supply sets are now experiencing exceptional sales growth throughout September. These products function as bridge items between traditional stationery and trending creative toys. This positioning allows retailers to capture customers from both groups while getting reasonable prices.

Board Games and Strategy Games Trending Together

Multiple board game and card game categories are trending well, demonstrating the Father's Day ripple effect in action. Families who discovered games together continue seeking similar products for ongoing entertainment.

This trend supports broader inventory investments across the board game category rather than focusing on individual titles.

Premium vs. Value Positioning

Action figures and collectables from various franchises are performing well due to coordinated industry-wide promotional campaigns. Collectables work particularly effectively as impulse purchases when positioned near point-of-sale areas.

Strategic Product Recommendations for September

High-Profit, Space-Efficient Options

Puzzle games and brain teasers will deliver excellent profit margins while requiring minimal storage space. These products appeal to multiple age groups and maintain consistent year-round demand. Card games, including strategy games and family options, provide compact storage solutions with high profit potential. Pocket-sized games give an added value as travel-friendly options for active families. These products can also serve as a backup source of entertainment if weather conditions change unexpectedly.

Premium Investment Considerations

Large construction sets, particularly LEGO products, can generate substantial profits if you can get reasonable prices. However, these items require significant floor space.

Premium toy investments depend heavily on specific market demographics and available retail space. Retailers in affluent areas with adequate space can successfully capitalise on premium demand.

Your Next Steps

September toys are difficult to navigate. You must plan strategically.

Written by:

Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

The toy retail market has always been challenging. Because trends shift rapidly, retailers must have sharp insights to succeed, as the trend graph below shows.

It did go down a bit recently, but it's expected to go up this year.

I was talking to a major buyer of toys in a large retail store, and here is his advice based on his experience. It's useful as it shares practical lessons from someone on the front line. Could you consider implementing his strategies to boost your shop's sales?

Lesson 1: Beware the Risks of Media Hype

Product hype, with media hype, can present a financial risk if the hype fails and consumer excitement does not translate into sales for some reason. A recent example that sparked this conversation involved the recent Disney Snow White dolls released alongside the film. Shortly after the film's release, we can see deep discounts on these dolls, which are widely appearing across major retailers. Look at the green arrow; you can see it's already at a 34% discount.

This rapid price reduction suggests that initial inventory orders have overestimated consumer demand.

Interestingly, this apparent overstock situation doesn't stem from dissatisfaction with the product. Early consumer feedback often highlighted the dolls' quality and design. Could you look at the red arrow highlighting what consumers thought of the product? 4.8 out of 5 is good. Instead, the poor sales appear directly linked to the film's disappointing reception. It shows that a well-made product can falter if the media it depends on underperforms.

Actionable Takeaway

Diversify inventory

Do not over-invest in recent trend-based items. Could you look at your good sellers and analyse your POS data relentlessly?

Strategic Ordering

Start with a small order for high-risk, licensed products. Reordering successful items is often less costly than discounting to clear unwanted stock at a loss.

Leverage Local Insight

Monitor your customer inquiries. Local demand is often a more reliable predictor than national forecasts. Again, your POS system is critical for tracking these trends.

Lesson 2: Look at LEGO

Contrast Disney's unpredictability with consistently high-performing brands like LEGO. LEGO always seems to sell; ask yourself why.

We thought it was because LEGO has extensive appeal. It is not just that while children are a core market, the brand also cultivates a massive and lucrative adult base. You can see this if you look at LEGO's tactics: with its limited editions and controlled releases, they do not just sell toys.

Actionable Takeaway

While securing LEGO exclusives might be difficult, focus on creating unique value propositions.

Target High-Value Niches

Consider courting adults as this 'kidult' market often has higher disposable income.

Create In-Store Exclusivity

Try to be unique in some way.

Bundles

Pair a popular toy with a related item, e.g. a book, craft kits, etc.

Strategic Promotions

Run limited-time, store-specific offers. I had a customer who brought some LEGO limited edition products based on space travel; they generated a lot of interest.

Look at the red arrows; they are not even targeted at kids. While you are at it, look at the price points.

Lesson 3: Target the Grandparent Market

What you can see in the toy market today is the growing financial influence of grandparents in toy purchasing. Today, they have fewer budget constraints than parents facing the rapidly increasing cost of living pressures. Grandparents today have significant spending power and a strong desire to treat their grandchildren. It makes them a crucial, high-value customer segment for independent toy retailers.

These grandparents prioritise durability, educational value, nostalgia, or finding that special 'wow' gift. They often buy from their memories, and your sales approach must reflect this.

Actionable Takeaway

Optimise your store and service model to get this lucrative demographic.

Accessible Store Layout

Make the physical shopping experience easy and pleasant for older customers.

Gift-Centric Approach

Offer attractive gift wrapping, create pre-made gift suggestions or bundles, and display items clearly as potential high-quality gifts.

Lesson 4: Fewer Kids, Fewer Hand-me-downs

There is a broad social trend now with our declining birth rates, which directly impacts the toy market.

Smaller families often mean fewer "hand-me-downs." Big Brother no longer has a little brother who can get his toys, which increases the need for more new toy purchases per child. Also, the budget per child has increased with fewer children. People buy fewer toys overall but spend more on them.

The market is shifting from quantity towards quality.

Actionable Takeaway

Prioritise well-made brand toys

Make this a key selling point in displays, signage, and staff interactions.

Justify Price Points

Do not shy away from higher prices for superior products.

Lesson 5: Educational Toys

Despite economic pressures and shifting trends, the demand for educational toys remains consistently strong. Parents seek developmental advantages, and grandparents favour toys offering substance beyond fleeting entertainment. It resonates powerfully across key customer segments.

Educational value is a potent, non-negotiable selling point that cuts through market noise. It aligns perfectly with the purchasing motivations of parents and, critically, the influential grandparent segment.

Do not forget educational toys.

Layout

Maintain a robust, diverse selection of science, arts and crafts, problem-solving, literacy, and imaginative play that builds cognitive or social skills. Use clear signage and shelf talkers to show educational aspects. Make it effortless for customers to find toys that teach.

Train for Authority

Could you make sure that your staff can confidently articulate specific educational benefits?

Conclusion: Thriving with Today's Independent Toy Retail Trends

The toy market presents undeniable challenges: unpredictable licensed products (Snow White example), the need to compete with giants (like LEGO, by adapting their strategies), understanding key demographics (grandparents), adapting to societal shifts (value focus), and meeting persistent demands (educational play).

Success requires decisive action. As independent retailers, your agility is your advantage. React faster than chains, curate stock based on your customer data, build genuine relationships (especially with high-value grandparents) and deliver outstanding value through quality and expertise.

Leverage your POS data to rigorously track sales and customer preferences. Understand these market dynamics. Reduce the hype risks, broad appeal tactics, key customer segments, the value shift, and educational demand. Make strategic inventory, marketing, and store experience decisions. Focus relentlessly on what works for your business to survive and thrive.

What's Your Next Step? Which of these lessons will you implement first in your store? Share your biggest challenge or success story related to these trends in the comments below!

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.