British website Toyworld reports that toy sales for the Amazon stores in Europe’s most important toy markets UK, Germany and France are very strong. In market share terms toys is actually one of the few product groups in which Amazon in Europe has a better performance than in the US. Meanwhile Toys R Us UK is close to filing for insolvency. (more….)
Most Amazon product groups in Europe earn rougly 20%-30% of what they earn in America. For toys though, it’s more than 50%. Simply speaking, toys are a much more important product group for Amazon in Europe than for Amazon USA.
Amazon earned 2 billion euros with toys in 2017 in the UK, Germany and France alone.
Amazon is particularly strong in Germany where sales of toys were 65% higher in 2017.
Related to this is the announcement by Toys R Us UK that they will probably appoint administrators on Tuesday unless some last minute financial deal is made. In plain English: they have run out of money and will file for insolvency on Tuesday unless they find an investor until then. TRU UK can’t pay the 15 million pounds VAT bill due on Tuesday.
Strong Amazon toy sales in Europe won’t be surprising for most Europeans. TRU has their special TRU prices. Most other stores, especially in Germany, only carry 5 POA figures and role play items. Amazon has a much wider range of products even if availability for the Black Series is still quite spotty at times.
Will our friends from the UK miss TRU should they actually go under?
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