The president of the E.Leclerc group warned the French of an increase in toy prices on Sunday October 2, a few weeks before Christmas. This Wednesday, October 5, sector players tried to reassure consumers by highlighting “a limited increase”. For Montpellier economist Benoit Mulkey, this increase was predictable.
Michel-Édouard Leclerc played against the Fouettard Fathers this Sunday, October 2nd. The president of the retail brand that bears his name warned the French: “It’s going to cost more to give your kids presents for Christmas”. After a December 25, 2021 marked by a shortage of toys, amid a post-Covid maritime crisis, will prices spoil the 2022 holidays?
A 6% increase in toy prices
On the part of The NPD Group, a company specializing in market research, we see a complicated situation. “The purchasing power of households is very tight at the end of the yearsaid this Wednesday, October 5, Frédéric Tutt, expert on the toy market, during a press conference. Our figures show a modest price increase of 6% in the games and toys market. (…) The French will have to mediate, but they will strive to protect the Christmas spirit.“
How can this price increase be explained? “The majority of toys sold in France come from China and Southeast Asia.explains Benoit Mulkey, economics professor at the University of Montpellier. After the Covid, the production lines struggled to restart. Some electronic components are always difficult to find. Add to that skyrocketing shipping costs and ultimately high fuel and energy prices in France and you get part of the answer.”
Yes, the price of toys will increase, but so will all manufactured products. it’s no surprise
But the Hérault expert also softens the announcements by Michel-Édouard Leclerc. “Yes, the price of toys will increase, but like all industrial products. And to a lesser extent than the price of energy or food. That’s no surprise. INSEE had warned that inflation would spread throughout the economy.”.
This Wednesday, the French sector of toy retailers promised to limit the impact on household wallets. “Despite the sharp and rapid increase in fees, retailers only gradually passed on the price increases”said Philippe Gueydon, President of the Association of Toy Specialists and CEO of the King Toy brand.
Christmas, a key time for sales
In Montpellier, Bioviva, which has been distributing its educational games since 1996, has followed this trend. “Despite inflation and rising raw material costs, our prices will not increase until 2023.told us the company that, thanks to Made in France, limits transport costs and can rely on the solar panels installed at its production site to face the energy crisis. We know the situation of French households. Christmas is a key time for us. So we agree to lower our margins to get affordable prices. In the end, the raise is capped at €2 or €3 for certain games that are the most greedy for commodities.