The Danish toymaker is all set to start its 74 stores as to meet its goal of opening 120 stores in the year. Its sales in the first half of 2020 were 14% higher than last year, and operating profits has grown to 11%.
September 05, 2020
The LEGO Group has seen a 14% surge in the sales and its profits has grown to 11% in the first half of FY 2020. The Danish toy-making company is planning to open 74 new stores this year, so to meet its target of starting 120 stores in 2020. Due to the crisis brought by the pandemic and the resultant lockdown imposed to curb the spread of the virus, while many retailers have witnessed a slump in their business, the LEGO Group has seen a great growth in their business.
Niels B. Christiansen, Chief Executive Officer at The LEGO Group said in an interview “We saw a very positive development during the coronavirus lockdown when families began playing and building LEGO sets together.”
The LEGO Group currently has 616 stores across the globe, with 14 in the UK. Of the new 120 stores it is opening, 46 were launched in the first half of the year. The company was able to more than compensate for all its 616 shops worldwide being closed at some point during the pandemic by increasing its online sales. The company’s top-selling ranges between January and June included Harry Potter, Star Wars, and Disney Princess.
Christiansen further added that “We’ve seen momentum continue into the second half of the year even after people started going back to work and to school. So the result is not just a reflection of two months when everyone was sitting at home.”
Alongside an increase in product sales, the LEGO Group also reported that after the lockdown period started, more customers were using its digital services. Downloads of LEGO digital building instructions doubled to reach 2 million in the first half of the year, and its app LEGO Life now has more than 9 million users in 80 countries.