The company is still owned by the family of Kirk Kristiansen, who founded Lego in 1932. Profits jumped by 4% to 10.8bn Danish kroner with sales up 4% to 36.4bn Danish kroner. 1 kroner is around 12p in Sterling, in pound sterling the profits for Lego were around £1.25 Billion.
Lego admitted it was holding too much stock in 2017 and set out in 2018 to stabilise the business. It called for a reset of the company in 2017 and cut 1,400 jobs worldwide to streamline the business.
This growth was despite the collapse of several big hitters in the Toy Market (Toys R US), which meant that it had less outlets to sell its Toys too.
How have Lego Stores kept open?
One big difference between Lego stores and many of the usual game stores you see in the retail sector is the number of interaction points there are in the store. The stores want you to play with the Toys and don’t complain if an arm goes missing or a child steps on an Obi-Wan-Kenobi.
This combined with staff who are on hand to play with the children in their store (or the big children) means you’re more likely to spend more time in a Lego Toy store than most other retail outlets.
What about the Licensing?
We spoke to Marty Brochstein, Senior Vice President of Industry Relations & Information at LIMA (the International Licensing Industry Merchandisers’ Association) on what else has contributed to the Growth of Lego:
“It’s important to note that licenses play a major role in Lego’s business, and indeed Star Wars, Harry Potter and Jurassic World were cited specifically as strong sellers in the most recent report”.
“Remember, that for years Lego wasn’t even in the licensed toy business. This is the 20th anniversary of its first licensed sets (Star Wars), which was followed only two years later with another major license, Harry Potter. Those two have formed the backbone of its licensed business, which has expanded to include properties from superheroes (Marvel, Batman) to videogames (Minecraft, Overwatch, Angry Birds) to cartoon characters (Powerpuff Girls), among others”