The market is projected to see a total revenue of $740 million in 2019, down from the $880.2 million seen the year prior, primarily due to the fall of the local arm of bankrupt toy retailer Toys ‘R’ Us in August 2018, as well as the increasing customer preference to purchase products in these categories online.
“Prior to its demise, Toys ‘R’ Us was the largest retailer in the industry, with a market share of over 20 per cent,” IBISWorld senior industry analyst Kim Do said.
“However, the company’s decline has accelerated the rate at which department stores and online-only retailers have captured market share, as consumers have shifted their spending away from industry retailers.”
Online retail spending grew by 11.9 per cent in 2018, with the trend increasing even further in the lead up to the holiday period, according to data from the Commonwealth Bank.
The average value of individual online transactions increased to $97, compared to $87 in 2015 – an 11.5 per cent increase which signifies a growing trend toward customers constrained dollars being spent through online channels rather than in-store.
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