Lego says it will continue expand online and through stores in coming months as it looks to bring its products to more children around the world.
It aims to have more than 140 stores in 35 Chinese cities by the end of 2019, while opening more than 70 stores in other markets. Next year it will open an office in Mumbai, India as a jumping off point for that market.
Lego is also upgrading its ecommerce platforms to improve the experience both for online shoppers and for wholesale partners. It is also using augmented reality in its new Lego Hidden Side range. During this year it will open more than 70 Lego stores outside China, including its fifth flagship store, in Amsterdam.
The update came as the Danish toy brand this week reported first-half revenues of DKK14.8bn, up by 4% on the same time last year, with global consumer sales 5% ahead of last time. Operating profits in the first six months of 2019 came in at DKK 3.5bn, down by 16%, while net profits of DKK2.7bn were 12% down, thanks to, said the group “significant investments in long-term growth.”
Over the first six months of the year, consumer sales grew in single digits, while sales in China increased by double-digit growth.
Lego Group chief executive Niels B Christiansen said the group was satisfied with its performance in a transforming global toy industry.
“At the same time we’re making upfront investments to create a strong foundation from which to grow in the long-term and inspire future generations,” he said. “This includes opening new markets, expanding in China, creating innovative retail experiences and developing exciting new products and play experiences.”
He added: “We are making these investments from a sound financial base to capture the opportunities being created by mega-trends such as digitalisation and global demographic and economic shifts which are reshaping the industry. Being ahead of these trends will allow us to inspire future generations of children.”
Image courtesy of Lego