NewsWire: 11/10/2020
- Classic toys have made a comeback during the pandemic, with parents pushing up sales of Barbies, Hot Wheels, and Tonka trucks. With kids at home much more and anxiety levels high, old favorites with no frills have risen to the top. (The Washington Post)
- NH: For the first time, Homelanders can actually finish a game of Monopoly. With after school activities canceled and many kids remote learning, children are spending more time than ever at home. And they are spending that time playing with physical toys. NPD Group reports that in the first three quarters of 2020, toy sales rose by 19.1%.
- Classic toys are seeing one of the biggest resurgences. Hot Wheels sales are up 9% QoQ. Barbie sales are up 30% QoQ. And Jenga and Monopoly sales are up 21% QoQ. Mattel (MAT), which owns Barbie, Hot Wheels, and Fisher-Price, has seen its stock rise 15.24% YoY.
- So why are retro games having a resurgence? There is a major nostalgia factor at play. Parents enjoy showing off their childhood favorites to their kids. Plus, midlife Xers want to fortify closer family ties, something they wanted but never had themselves growing up. Classic games provide that quality bonding opportunity, where parents and children can have fun together. (See "LEGO: New Stress Reliever for Adults.")
- Parents may also be attracted to the tactile nature of these games. Developmental psychologists have warned that kids are spending too much time looking at screens. And that time has only increased with remote learning. (See "No Touching! (Unless It's an iPad).") Toys like Legos and Hot Rods provide the kinesthetic play that psychologists recommend while allowing kids to escape their all-encompassing digital environment. (See “Toys Prepare Children for the Workplace.”)
- I would expect toy sales to remain healthy. For one, the holiday season is almost here. But maybe even more importantly, winter is coming, and new Covid-19 cases have never been higher. With parents and kids stuck inside, a classic board game may be just what families need to have fun during a stressful time. (See “Board Games Make a Comeback.”)
