Despite being a season highly anticipated by merchants, the projections for 2023, marked by high inflation and a challenging political and economic environment, were not encouraging for the sector. so it could be said that the goals were in line with what was expected.
Even so, the Argentine Chamber of the Toy Industry reported a 6% drop in sales of games and toys compared to the previous year. This trend, however, showed an improvement in the last three days thanks to Toy Store Night, which mitigated the drop, which was around 10% before the week before Christmas.
During the event, which took place from Thursday the 21st to Sunday the 24th inclusivebank promotions were implemented that attenuated the final result, closing with a decrease of 6% compared to the previous year.
Christmas 2023: what the sector said
Julián Benítez, president of the Chamber, highlighted that “the prices of toys, compared to other items such as food and drinks for these festivities, did not experience a proportional increase, lor that influenced the choice of the most popular gifts for children at Christmas: toys.
Regarding the price variation, Benítez pointed out the need to consider its origin: “The national industry increased prices in the last 12 months between 110 and 120%considerably below the level of accumulated inflation. In contrast, imported products increased between 200 and 240% and set their prices according to exchange fluctuations.” In addition, he added that “no significant price adjustments were recorded in recent days.”
The Chamber indicated that seven out of every 10 gifts that Santa Claus delivers are toys and, this year, despite families’ budgetary limitations, the well-being of children was prioritized, reducing other expenses during Christmas Eve.
Thus, the average purchase value in neighborhood toy stores was $7,000 per toy, while in toy store chains it amounted to $18,000.
However, according to the House report, except products for outdoor activitiessuch as balls, inflatables, sand games and educational toys for young children, all categories experienced declines.
“Right now, there is no one toy that stands out, but there are multiple categories in demand. This is positive for the sector, since it is distributed more equitably and sales are not concentrated in one or two specific products. There is a strong competition within the industry,” stressed the president of the entity.
Now, the industry places its expectations on Three Kings’ Day, which will be celebrated next January 6.
Source: Ambito
