Christmas 2022: should we be afraid of rising prices for toys, as stated by Michel-Edouard Leclerc?

Christmas 2022: should we be afraid of rising prices for toys, as stated by Michel-Edouard Leclerc?

The president of the E.Leclerc group warned the French on Sunday, October 2, against raising the prices of toys in the weeks before Christmas. This Wednesday, October 5, players in the sector tried to reassure consumers by emphasizing “moderate growth”. For Montpellier-based economist Benoit Malky, this growth was predictable.

Michel-Edouard Leclerc played Father Fuettor this Sunday, October 2. The president of the retail brand that bears his name has warned the French that “gifts for your children this Christmas will cost more”. After December 25, 2021 marked by a toy shortage in the midst of the post-Covid shipping crisis, will prices spoil the holidays in 2022?

Toys rose in price by 6%.

As a market research company, The NPD Group, we recognize the difficult situation. “The purchasing power of the population at the end of the year is very tight– said on Wednesday, October 5, an expert on the toy market Frederic Tut during a press conference. Our figures show a modest 6% increase in prices in the games and toys market. (…) The French will have to judge, but they will try to protect the spirit of Christmas.

What can explain this increase in prices? “Most of the toys sold in France come from China and Southeast Asia.explains Benoit Malky, professor of economics at the University of Montpellier. After Covid, production lines struggled to restart. Some electronic components are always hard to find. Add to that the steep delivery costs and ultimately high fuel and energy prices in France and you have part of the answer.”

Yes, prices for toys will rise, but like all manufactured products. it’s not a surprise

But the expert from Ayrault also softens the claims of Michel-Edouard Leclerc. “Yes, the prices of toys will rise, but like all industrial goods. And to a lesser extent than for energy and food. This is not surprising. INSEE warned that inflation will spread throughout the economy”.

This Wednesday, the French toy distributor sector pledged to limit the impact on household wallets. “Despite the sharp and rapid increase in tariffs, distributors only gradually moved to increase prices”– rejoiced Philip Gaydon, president of the Federation of Toy Specialists and CEO of the King Toy brand.

Christmas, a key period for sales

In Montpellier, Bioviva, which has been selling its educational games since 1996, followed this trend. “Until 2023, our prices will not increase, despite inflation and the increase in the cost of raw materials.told us the company, which limits transport costs thanks to Made in France and can rely on solar panels installed on its production site to cope with the energy crisis. We know the situation of French households. Christmas is a key time for us. Therefore, we agree to reduce the margin in order to keep the prices affordable. After all, the increase will be limited to 2 or 3 euros in certain games that are the most greedy for raw materials.

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