The economic impact of the novel coronavirus pandemic has seen closure of hundreds of stores of retail chains and companies.
Bur despite that situation, the legendary toy maker Lego is now getting ready to open 120 new shops in within this current year itself.
The Danish toy firm still believes in a very solid future for the physical, bricks and mortar stores even though there has been a significant drop in footfall on high streets and norms of social distancing restrictions in shops because of the pandemic has reduced number of customer visitng such physical stores.
“When our stores have reopened after lockdown, there have been queues,” Lego chief Niels Christiansen said in a television interview to the BBC. “We give people the brand experience in our shops which we can’t do outside.”
This announcement by the company comes on the back of the toy firm reporting a 7 per cent year on year growth in revenues for the first half of the year at DKK 15.7bn with am 11 per cent growth in operating profit in the same period.
There are currently 612 stores owned and run by the company throughout the world. Of the total number of new store openings planned by the company for this year, it has already opened 46 of them during the first half of the year.
On the overall, there are 80 stores of the company in China.
According to the company, the biggest change in consumer trends that it has noticed since the beginning of the health crisis is the tendency of more adults getting involved in building Lego kits as they are forced ot spend more time indoors with kids because of the pandemic.
“We have a more than a million adult fans signed up to our website,” Christiansen said. “We saw a very positive development during the coronavirus lockdown when families began playing and building Lego sets together,” Christiansen added.
He noted that in the first half of the year, there was a more than two and half fold growth in the sales of the more complicated and more expensive big Lego sets offered by the company, because families looked for big projects to make together during the lockdown.
“We’ve seen momentum continue into the second half of the year even after people started going back to work and to school. So the result is not just a reflection of two months when everyone was sitting at home,” Christiansen said.
The role of e-commerce for the business was also vital in addition to the company opening up new stores. The company had noted that the number of visits by users to its website had more than doubled in the first half of 2020 to reach a total of 100 million.
The themed sets of the company were still among the most popular toys, with the top-performers including Star Wars, Disney Princess, and Harry Potter, the company said.
(Adapted from BBC.com)