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Is the board game industry “recession proof”?
By Darlene Calhoun

During times of economic down-turn, board games have historically been “recession proof”.  During the worst unemployment times and when consumers are keeping a keener eye on their spending habits, it appears “staycations” are an economical alternative and board game play increases.  Board games have traditionally fared well in recessions.  Parchessi was a big hit during World War I and during the Great Depression, Monopoly was a huge seller.  In today’s times, it’s for good reason, a family a four’s movie theatre outing average costs including tickets, popcorn and a soda is $80.00.  Compared to $20.00 to $25.00 for a board game – with the added replay and quality family time value– board games are an excellent alternative.
 

Board game sales have already increased 10% the first half of 2009 – pre the “fourth quarter” season, according to researchers NPD Group, Inc.  In 2008 board games sales rose 6% to around $794M.  Also notable is the average price of a toy rose by 1% to $6.66 and toy sales fell 2% during the first six months of this year.  There is a decrease this year in children’s products in the 3 to 5 years age range.  The big demand for web-connected toys combining a toy with an internet site dropped 43% in sales, also according to the researcher NPD Group, Inc.
 

Good news:  There has been an increase in the toy and game industry action-figure sales rising 13% and building-set sales increased by 20%.  And again, board games sales are up 10%.

Retailers everywhere have been marking down toys and keeping their inventories smaller in these economic times.  Toy makers are preparing for the decline in consumer spending this season.

Hasbro will be promoting “family game night” for children, parents, and grandparents this year, said Phil Jackson, head of the Pawtucket, R.I. Company’s game division.

While Clue, Monopoly and the like are good old standards, in this day and age of the adrenalin seeking video game youth, perhaps a new and exciting board game that is fast paced or total family interaction may just be the big seller this season in your retail store.   The new and exciting games won’t be found at your local Walmart.  They can be found at your local specialty retailer store.

Turn, Baby, Turn (What is Turn?)
by Cathy Donovan Wagner, Retail Mavens

The following is a true story. The names have been changed to protect the innocent idiot.
Pat owned a toy and children’s clothing store. After a great year in which she was up about $42,000 from the previous year, even while she maintained the same expense structure, Pat was looking forward to seeing her accountant. “There will be good news,” she thought.

Don the accountant met her at the door of his office. “Congratulations on a great year,” he began, “I’ve got good news and bad news for you. The good news is that you obviously had a sales increase. The bad news is that you owe taxes.”  Pat sighed. “How much?”  He replied: “More than you have in your account, I’m afraid.”  I was horrified. (Okay, this story actually happened to me.) In my giddiness over my increased sales, I hadn’t paid enough attention to my inventory levels. It was my introduction to the importance of turn.

What is turn?
It refers to the number of times each year the inventory in your store sells out. More turn is good, because every time you sell an item you recoup its costs plus earn the profit you need to pay yourself and your business expenses. Turn is determined....click here to read more. 

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