Lockdown Lego building boom with 'more adults than ever before' buying the toy bricks
Lego has enjoyed its fastest growth in five years and a boost in online sales thanks to lockdowns and “more adults than ever before” buying their products.
Toys, board games and video games have been the winners of lockdown. With pubs, clubs and restaurants forced to shut, Lego and other toy companies have enjoyed spikes in sales.
Lego says families in lockdown have been a key part of their increased online sales, with “more adults than ever before” buying its products.
Lego’s CEO Niels B Christiansen said: “We are very pleased with these results. They show the timeless relevance of the Lego brick and learning through play.”
But the Danish toy company - which beat Ferrari to the title of “world’s most powerful brand” in 2015 - also attributes its success to its investment in online platforms and store openings.
The firm has opened 134 new stores, including 91 new outlets in China. The company expects to open 120 stores in 2021, 80 of those in China, which is the company’s biggest growth market.
Lego reported a rise in operating profits of 19% to 12.9bn Danish kroner (£1.5bn) last year. Revenues rose 13% to 43.7bn kroner (£5bn) and consumer sales jumped by more than a fifth.
Another key reason for Lego’s growth is its investment in its digital development. Lego’s CEO Niels B Christiansen says children are “digital natives” who “don’t care whether they play physically or digitally”.
Mr Christiansen says he plans to recruit hundreds of computer experts in the UK, Denmark and China as part of this digital drive.
The company famed for its plastic bricks also sees collaboration with digital games companies as key to their long-term success. Lego said recent Super Mario collaboration with Nintendo was its most successful launch.
Lockdown has also been good business for Hasbro, the world’s largest toymaker. Hasbro’s $1.7 billion revenue in the last quarter is 4% higher than the same time last year. Locked down shoppers in the US and Canada also helped Hasbro to a 27% spike in gaming sales and a 20% rise in their TV, film and entertainment product sales.
Last April there was a 240% rise in the sales of board games and jigsaw puzzles during the first week of the UK’s Covid lockdown.