Toys at Tesco: how The Entertainer partnership will help boost Christmas sales

Almost 50% of all toy sales in the UK are made during the festive season – so when Tesco revealed that it would be joining forces with The Entertainer to open a number of branded instore toy concessions in time for the Christmas peak sales period, it seemed the perfect match.

Tesco has said it is “delighted” to be partnering with the UK’s leading toy store to trial a number of instore concessions, saying the move will allow it to “bring a new offering to our customers.” It will, of course, also give the grocer’s revenue stream a welcome boost in the face of consumers’ reduced basket spend as they continue to battle with the cost-of-living crisis.

For its part, The Entertainer will retain full oversight of the product range, pricing and merchandising across the new stores, as well as running free instore events such as character visits.

The news, which was announced last week, came as a surprise to many; particularly as Asda’s trial concession partnership with The Entertainer – which initially launched in August 2021 – ended earlier this year.

Despite this potential red flag, the move was broadly considered to be a good decision. Due to launch in October, there is no doubt that the partnership will bolster Tesco toy sales while also giving The Entertainer a broader, more accessible platform and wider customer reach.

Once a significant player in the hugely lucrative toy market, driving huge sales for both suppliers and brands, Tesco has been criticised by some analysts in that sector for playing it safe and showing a reluctance to take on new ranges and product lines.

So will the new partnership help Tesco address these claims and boost sales as it moves into the all-important golden quarter?

Toys, grocery and the golden quarter

In the 12 months between August 2021 – August 2022, the toy retail industry was worth around £3.6 billion.

However, during the ‘golden quarter’ in Q4 2021, the toy industry was worth 46% of annual toy sales, with the month of December alone worth 21% of annual toy sales.

Toy specialists including The Entertainer are the fastest growing retail channel for toys in the UK, up +32% and account for 29% of all toy sales. Comparatively, retailers and grocers earn up to 19% of total toy sales in the UK.

The trial partnership between the UK’s largest supermarket and the leading toy retailer will launch in October, with the concessions opening in 35 Tesco stores across the country.

The full list of Tesco stores that will be part of the trial is set to be announced over the coming weeks as the October launch approaches.

“We’re delighted to launch this trial with The Entertainer team, which is a leading expert in its field. We’re excited to work alongside the retailer and to bring a new offering to our customers,” says head of strategic partnerships at Tesco, Louise Goodland.

Passion projects

With Tesco having the title of largest retailer in the UK, the earning potential of the collaboration is extremely significant. Around the festive period too, this applies even more so.

“I think the strength of the partnership is huge. With The Entertainer solely focusing on toys, they have the full range of selling potential, from low to high price points,” says executive director of UK toys at NPD Group, Melissa Symonds.

She continues: “Toys are very much a passion category for the people purchasing them. The Entertainer don’t sell a lot of toys over £20 so are relatively affordable, and in Q4 and Christmas time, they get many more sales from the high price points as parents are buying their children bigger presents.

“Times are tough at the moment, so people aren’t spending as much on high price point items. But interestingly, they’re also not spending as much on the low-price points. The £10 – £30 price point items are the ones that are really selling this year.

“With Tesco being the leading retailer, their earning potential in the toy market will be huge. I think this is a good way for the synergy of both teams to work together by upgrading their toy offerings and opening more stores.”

Asda

Before Tesco and The Entertainer joined forces, Asda previously had a partnership with The Entertainer earlier this year.

Following a successful trial partnership between The Entertainer and Asda to manage toy departments within Asda stores, it was agreed earlier this year that the concept will not roll out any further.

A letter was sent to suppliers by Lisa Lennon, Asda’s vice president of general merchandise, which confirmed that the trial partnership in 11 Asda stores is being brought to a close.

The letter states: “Nearly a year ago I wrote to you all, to inform you that we would be undertaking a test and learn partnership with The Entertainer in the form of a fully branded The Entertainer Toy category.

“The trial went live in February in five stores and has grown to 11 stores as the partnership developed. Over this time period a lot of hard work has gone into landing and maintaining this offer and a huge amount has been learnt by both parties.”

Asda’s Lisa Lennon reiterated: “A lot of hard work has gone into making this a successful trial. We would like to thank The Entertainer and its team for their vision and support throughout this project.”

Asda said it will build on learnings from the trial and maintain its own toy offer in stores.

Mark Campbell, CEO of The Entertainer, comments: “We are really proud of how incredibly hard both The Entertainer and Asda teams have worked on this project to deliver a successful trial across the 11 Asda stores. I’d like to thank everyone involved from both The Entertainer and Asda in bringing this trial to life.”

Entertaining the nation

Founded in 1981 by husband-and-wife team Gary and Catherine Grant, The Entertainer has more than 170 stores across the UK, a further 32 internationally, plus franchise partners.

“We’re always looking for new and innovative ways to bring the wonder of The Entertainer to customers, so we’re very excited to announce this partnership with Tesco, which takes our products and experiences directly to families and children right in the heart of their local communities,” says chairman and founder of The Entertainer, Gary Grant.

He added: “Our mission when we launched The Entertainer in 1981 was simple – to become the best-loved toyshop, one child, one community at a time – and we’re incredibly proud that this partnership will enable us to continue achieving this mission.”

Going forward

Ultimately, it seems Tesco are the ones picking up the pieces of the Asda collaboration. While we head into the final months of the year and the prospect of a 21% surge in toy sales, the retailer appears to want to reap the benefits of the golden quarter as much as possible.

Melissa Symonds, executive director of UK toys at NPD Group believes the benefits of going into specialist toy stores is much stronger than browsing online: “The ability of seeing a physical product is much stronger than when you see something online, as you get a lot more people discovering lines and items that they wouldn’t think about looking for when they go online.

“You can see, touch, and feel and it’s much easier to browse. The amount of work that goes into getting the products on shelf for consumers is phenomenal.”

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