According to Agerpres, toymakers and industry experts consulted by Reuters may not have as many gifts for Santa this year because consumers in Europe and the United States prefer food and household goods.

Consumers around the world are struggling to cope with high inflation and slow economic growth. The company’s management warns that the holiday season, which begins on Black Friday and ends in late December, will be difficult for retailers that sell non-essential goods.

Favorite toys such as Barbie dolls, Transformers figures and Hot Wheels cars will continue to be at the top of children’s wish lists, says Lu Wee Teck, manager of Euromonitor International. But many parents cannot afford them this year, experts say.

Amazon’s best-selling Barbie doll, the Barbie Pop Reveal model, is currently costing UK parents £19.99 ($24.89).

Also, the Hot Wheels Scorpion car set was £35 in 2020 but is currently on sale for £60 on Amazon.co.uk.

People are more concerned about the Christmas meal than the presents

“The most important thing for people this holiday season will be to put food on the table for their families,” said Isaac Larian, CEO of MGA Entertainment, maker of the Bratz dolls. Toy makers Hasbro and Mattel have already warned that toy industry sales will be lower.

But the final results may be even weaker than expected, experts and executives at four toy companies told Reuters.

Isaac Larian expects MGA Entertainment’s holiday sales to be 10-12% lower than last year. Christmas demand will be lower than last year, says Nick Aldridge, chief operating officer of Bandai, maker of Tamagotchi virtual pets.

Under these conditions, Aldridge expects further price declines as retailers look to switch to older products.

“There is excess supply from previous years, so there is a reduction in inventory at deep discounts,” Aldridge said.

Black Friday, a tip for retailers before Christmas

Already anticipating lower demand and excess inventory, many retailers have ordered fewer items than usual this year. This means that items that are in high demand will sell quickly.

Black Friday will give retailers the first clue. According to consulting company Panjiva, from June to August, the cost of toy imports in the US fell by 32% year-on-year. This is an important time to stock up on toys before the holiday season.

In addition, shipments of toys by sea, measured by the number of containers, fell by 8% in September.

“The toy market has been declining throughout the year,” says Florian Sieber, CEO of German toy maker Simba. Demand from consumers in Europe is lower than last year, a year when demand was lower than in 2021, he said.

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