Are toy stores dying out? Why are big-box chains struggling despite toy sales rising?
much awaited trailer for pixar toy story 5 Dropped last week, revealing a new toy joining the beloved Playtime crew: a tablet.
In the description posted on youtubePixar writes, “The age of toys is over…?”
Rex the Dinosaur and Slinky the Dog trembled with anticipation as the delivery boxes arrived. Woody and Buzz Lightyear are linked as INXS icons never Tear Us Apart Runs in the background.
It’s just a movie, but the cartoon scene also dramatizes a real threat. In the age of screens, amid reports of struggling retail stores Studies are suggesting This is what all kids want for Christmas robuxWhat is the future of the toy industry?
Doug Stephens, retail consultant, author and founder and CEO of Retail Prophet, said there are many different forces at work in the market — not the least of which are falling birth rateWhere fewer kids means fewer customers than We saw the toy boom in the 1950s and 60s.
We also live in a world of saturated delivery, where Amazon or any number of third-party marketplaces can deliver practically any toy to your door, significantly reducing the need for big-box toy stores, Stephens told CBC News.
But then again, so are screens.
“The whole area of online and digital consoles has decimated the toy category,” Stephens said.
“Over the last 20 years, we’ve seen a rise in gaming, we’ve seen a huge increase in gaming console sales and it’s almost become a subculture.”
A BC father filed a lawsuit on behalf of his 12-year-old child, alleging that Roblox is designed with ‘addictive, manipulative and financially exploitative’ features and gameplay elements. The civil claim seeks certification of a class-action lawsuit against Roblox and its Canadian branch. Roblox has not filed a legal response, according to online court records, and the company did not immediately respond to an emailed request for comment.
The rise and fall of big-box toy stores
The Baby Boomer era was, in many ways, peak toy store. Economic prosperity in North America, rising birth rates, and a more child-centered culture all helped fuel a toy bounceThe North Carolina Museum of History notes.
Other than this, new type of plastic According to Strong’s National Museum of Play, toys were more widely available, making them easier and less expensive to manufacture.
In 1957, businessman Charles Lazarus launches Toys ‘R’ Us, The first big-box toy store, the History Channel notes. The History Channel points out that that era also saw the birth of some of the most iconic toys of all time, like Mr. Potato Head, Matchbox Cars, and Barbie.
However, by 2018 things had changed. Frustrated by the rise of long-term debt, online shopping and gaming, Toys ‘R’ Us applied for bankruptcy protection and then ended its US operations. By 2021, all this American stores are gone.
On Sunday, the Edmonton Journal and Financial Post reported this Toys ‘R’ Us Canada closed about 38 stores this year and put another 12 up for sale. According to the report, the national retail chain that once had 103 Canadian locations now has just 40 left.
In a statement to CBC News, a spokesperson for Toys ‘R’ Us Canada said it was “making strategic changes to better meet the needs of Canadian families and reimagine the toy experience.”
The statement did not specifically mention store closures, but said Toys ‘R’ Us Canada is continuing to invest in new locations.
The problems facing toy stores are not limited to Toys ‘R’ Us. Canadian retailer Mastermind Toys rescued verge of bankruptcy In 2023, 18 shops closed And is selling a major part of its business to Unity Acquisition.
As retail insider That acquisition, it turns out, preserved the Toronto-based company’s 48 stores and 85 percent of its employees.
Well-known Canadian specialty toy and children’s book retailer Mastermind GP Inc. has been granted protection from its creditors as it struggles to restructure amid financial challenges and a slowing economy. It is seeking permission to close some stores after the holiday season as it grapples with debts running into millions.
Toy sales have actually increased – just not necessarily for kids
Still, despite the apparent struggles of big-box toy stores, Canadian toy sales are on the rise this year, according to retail data provided to CBC News by the Canadian Toy Association, The Toy Association in the U.S. and market research company Circana.
Canadian toy sales Circana said orders for the first half of 2025 rose 18 percent compared with the same period last year, driven by games, puzzles and building sets.
Sales data and industry trends indicate that traditional toys , Such as games, building sets, trading cards, plush and collectibles , High demand will remain, Goldman spokeswoman Kristin Morency said Toy Association.
And marketing data according to the company IBIS WorldThere are actually more hobby and toy stores in Canada now than there were last year – about 4,100 of them across the country in 2025, a growth rate of 3.7 per cent.
So, what is the discrepancy? It depends on how you define toys, said Andrew Wagar, president and CEO of Swerve Strategic Marketing and board member of the Canadian Toy Association.
“The key drivers of that growth are adult toy-buyers or what we might call ‘adult collectors’ in the industry – or that’s the trending term.”kidult,” Wagar told CBC News.
It’s “the kids” who are buying Lego, Pokemon cards, action figures and collectibles, he said, and they’re willing to pay more for them. Wager said retailers that have recognized that market and taken an interest in it are doing well.
So while we’re seeing a decline in big-box stores like Toys ‘R’ Us , Partly due to e-commerce and Walmart and Amazon taking market share of toy buyers. , “We are seeing an increase in hobbies,” he said.
“Where do local collectors go to shop? They want to go to local hobby and toy stores.”
‘All I want for Christmas is Robux’
a viral Youtube video A song called “All I Want for Christmas Is Robux” circulated on the internet a few years ago. The sweet parody of Mariah Carey’s Christmas anthem is about the in-game currency of the online game Roblox, called Robux.
Again, it’s just a video, but like toy story 5‘s tablet, tells a deeper story about Many children want these types of toys, Parenting Forum Complaints about their kids asking for Robux are so numerous, they call it an “invisible gift”, while they also often suggest gift cards, the in-game currency. luggage storage,
During this time, multiple top toy lists for this holiday season $700 Nintendo Switch 2 + Mario Kart World bundle and a new study feature Entertainment Software Association More than half of the nearly 700 children surveyed say they plan to ask for video game paraphernalia this Christmas.
But as the traditional toy industry has suffered from this boom, there is now also an “awakening” happening as we learn more about screen time and development, and parents are looking for alternatives like traditional games. Said Stephens of Retail Prophet.
Still, when you’re up against Amazon’s convenience, any retailer — toys or not — needs to ask themselves what they offer customers that other retailers don’t, Stephens said.
That’s why we’re now seeing some toy stores focus more on experiences and play — as somewhere to go to have fun with your child, he said. For example, in Calgary, Cherry Tree Lane Toys hosts events and offers birthday party packageThe Minotaur in Kingston, Ontario, hosts weekly events craft nights and twice-weekly game nights.
“Stores that sell products are dying out. Stores that sell experiences are growing in,” Stephens said.
Perhaps that’s why Toys ‘R’ Us said in an email to CBC News that it is making some strategic changes. is expanding its new free-with-purchase play gym and “birthday party experience” to many stores.
Changes in consumer behavior have had a major impact on the toy industry, especially small businesses. Toy sales are down across the country, but Calgary toy stores are hoping some creativity will help attract customers.
