Northern Highlights

Last year in Norway was described as the Year of Modernization when it came to the country's toy stores, at least for those that were willing to accept the future—and today's tough competition.

Shops in the land of the Vikings have, since World War II, mostly been independent “corner” shops. Only a few big box or department stores, like Steen & Ström and GlasMagasinet in Oslo, and Sundt in Bergen, have been successful. In just the last 25 years, though, eager investors, builders and property owners have established large shopping malls outside of Norwegian cities where the shopping center owners have been gathering the most active chains and affiliates of well known international, Scandinavian and national retailers and brand names.

Most of Norway's toy shops have belonged to and have been governed by these so called “voluntary chains,” such as Brio Partner, Edwis, Ringo, ToyClub, Buddy, Extra Leker, LekePlaneten and Yes!vi Leker. In the last two to three years this very Norwegian marketplace has been partly invaded by the Danish TopToy conglomerate, consisting of centrally operated Toys “R” Us and BR Toys shops. The latter is currently being reorganized and consolidating before moving further along Norway's very rough coastline.

Alongside the shopping malls, one can also now find very active new chains and affiliates that focus mostly on price, and therefore on their own brands. These kinds of markets are often built in old warehouses with interiors left more primitive compared to traditional retailers. Merchandise is often displayed directly on the transport medium: the EuroPall. Important actors in this field include Extra Leker, LekePlaneten and SmartClub.

Because of these newcomers, corner toy shops now are watching the competition. In fact, most of the small shops have moved from traditional neighborhoods to shopping malls outside the city centers and, in return, some of these retailers have struggled with their bottom lines and have run into trouble financially. That is why the brightest shop owners now are looking in another direction. Together with the representatives of the wholesalers and chain operators, the local retailers are now going through their shops with eyes for efficiencies and seeking out possibilities of making the flow of articles more refined, and thus more profitable. Some of the biggest international brands—Hasbro, Mattel, Lego—are even being distributed directly to Norwegian retailers from neighboring countries.

After a round of price competition in the late 1980s and the '90s, retailers' new operating philosophy is directed towards a more streamlined operation behind the scenes. On the outside, many modern retailers have observed that it pays great dividends to update their shops and make them more of an experience to visit. The result is a stronger bottom line, more customers and, of course, access to better-known products, something that is increasingly important as Norwegian children have decided they will only accept toys that feature brand names as gifts. Everything else, they told reporters last holiday season, is unacceptable!

Brian Peerson is a contributing editor to Norway's Baby, Hobby & Toy magazine, Oslo.