Colosseum kits and plastic flowers help Lego double revenue
COPENHAGEN, September 28 (Reuters) – Toy maker Lego doubled revenue in the first six months of the year as customers flocked to its reopened stores to purchase Star Wars building sets and made flower bouquets from its colored plastic bricks.
While parts of the global retail industry are still reeling from the pandemic and related supply chain issues, the family business said it will continue to bet on physical stores to attract new customers.
“If anyone doubted the relevance of stores on the other side of COVID-19, we just saw both traffic and revenue coming back to stores,” Managing Director Niels Christiansen told Reuters.
Lego said it had overtaken the toy industry in all major markets in the first six months of 2021 as production was not interrupted by COVID-19 restrictions and most of its physical stores have reopened.
Based in Billund, Denmark, Lego plans to open 174 new stores worldwide this year, reaching 851 stores in total. Last year, Lego opened 134 new stores. During the first half of this year, it opened 60 new points of sale.
Popular building sets in the first half of the year were Lego Star Wars and the advanced Lego Creator Expert sets, which include bouquets of flowers and a model of the Coliseum in Rome. They have become popular among adults stuck at home during times of confinement.
Lego also opened a new flagship store in Manhattan, New York, in June, where customers can interact with Lego products, both physically and digitally, for example by designing new Lego figures or creating a Lego model of their face.
The new store format will be introduced in around 60 stores this year.
“It’s less about selling products and more about showing the entire Lego universe to consumers,” Christiansen said.
Despite rising freight and raw material costs, Lego more than doubled its operating profit in the first six months of this year to 8 billion Danish kroner ($ 1.26 billion) from the same period last year.
Revenue increased 46% to 23 billion crowns and online sales across all platforms increased 50% from the same period last year, Lego said. He did not give a figure for online sales or their proportion in total sales.
($ 1 = 6.3437 Danish kroner)
Reporting by Nikolaj Skydsgaard; Editing by Susan Fenton
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