Long awaited trailer for Pixar Toy Story 5 came out last week, introducing a new toy to join the beloved gaming team: the tablet.
In the description posted on YouTubePixar writes: “Is the age of toys… over?”
Rex the Dinosaur and Slinky Dog tremble with anticipation as the delivery box arrives. Woody and Buzz Lightyear cling to each other like the iconic INXS characters. Never tear us apart plays in the background.
It's just a movie, but the cartoonish scene also dramatizes a real-life threat. In the age of screens, amid reports that retail stores are struggling and studies suggesting everything the kids want for Christmas RobuxWhat does the future hold for the toy industry?
According to Doug Stevens, retail consultant, author, and founder and CEO of Retail Prophet, there are a number of different forces at work in the market, not the least of which are falling birth ratewhere fewer children means fewer clients compared to the toy boom we saw in the 1950s and 60s.
We also live in a world of saturated distribution, where Amazon or any third-party marketplace can deliver almost any toy to your doorstep, greatly reducing the need for large toy stores, Stevens told CBC News.
But there are also screens.
“The whole online console and digital console space has just destroyed the toy category,” Stevens said.
“In the last 20 years we've just seen a surge in gaming, we've seen a huge surge in gaming console sales, and it's almost become a subculture.”
A British Columbia father has filed a lawsuit on behalf of his 12-year-old child, alleging that Roblox is designed with “addictive, manipulative and financially exploitative” features and gameplay elements. The civil suit seeks confirmation of a class action against Roblox and its Canadian unit. Roblox did not file a legal response, and the company did not immediately respond to an email request for comment, according to online court records.
The Rise and Fall of Big Toy Stores
The Baby Boomer era was in many ways the peak of toy sales. Economic prosperity in North America, a booming birth rate and a more child-friendly culture have all helped fuel the toy boomnotes the North Carolina Museum of History.
Besides, new types of plastics They were more accessible, making the toys easier and cheaper to produce, according to the Strong's National Museum of Play.
In 1957, a businessman Charles Lazarus launched Toys 'R' Us, the first major toy store, notes the History Channel. This era also produced some of the most iconic toys of all time, as the History Channel explains, such as Mr. Potato Head, Matchbox cars, and Barbie.
However, by 2018, everything changed. Toys 'R' Us, plagued by long-term debt, online shopping and the rise of gaming, files a lawsuit bankruptcy protection and then liquidated its US operations. By 2021, all of it American stores have disappeared.
Sunday Edmonton Journal and Financial Post reported that Toys 'R' Us Canada has closed about 38 stores this year and put 12 more up for sale. The national retail chain, which once had 103 locations in Canada, now has only 40, according to the report.
In a statement to CBC News, a Toys 'R' Us Canada spokesperson said the company is “making strategic changes to better meet the needs of Canadian families and reimagine the toy experience.”
The statement did not specifically address store closures, but said Toys 'R' Us Canada continues to invest in new stores.
The problems facing toy stores aren't limited to Toys 'R' Us. Canadian retailer Mastermind Toys was rescued from on the verge of bankruptcy in 2023, closure of 18 stores and sold most of its business to Unity Acquisitions.
How Retail Insider notes that the acquisition retained the Toronto-based company's 48 stores and 85 percent of its workforce.
Well-known Canadian retailer of toys and children's books, Mastermind GP Inc. has received protection from creditors as it tries to restructure amid financial problems and a slowing economy. The company is seeking permission to close some stores after the holiday season as it struggles with millions in debt.
Toy sales have actually increased, but not necessarily for children
Still, despite the apparent struggles of major toy stores, toy sales in Canada are rising this year, according to retail data provided to CBC News by the Canadian Toy Association, the U.S. Toy Association and research company Circana.
Canadian Toy Sales They grew 18 percent year-on-year in the first half of 2025, with games, puzzles and building kits leading the way, Chirkana said.
Sales data and industry trends show that traditional toys — such as games, building sets, trading cards, plush toys and collectibles. — continue to be in great demand, said Christine Morenci Goldman, spokeswoman Toy Association.
And according to the company's marketing data IBIS WorldIn fact, Canada now has more hobby and toy stores compared to last year—about 4,100 of them across the country in 2025, a growth rate of 3.7 percent.
So what's the discrepancy? “It comes down to how you define toys,” said Andrew Wagar, the company's president and CEO. Swerve Strategic Marketing and board member of the Canadian Toy Association.
“The primary driver of this growth is adult toy buyers, or what we might call in the industry “adult collectors.”child” Vagar told CBC News.
It's the “kids” who buy LEGO, Pokemon cards, action figures and collectibles, he said, and they're willing to pay more for them. According to Vagar, retailers who have recognized this market and started working with it are doing well.
So, while we're seeing a decline in big box stores like Toys 'R' Us — thanks in part to e-commerce, as well as Walmart and Amazon gaining market share among toy buyers. — “We are seeing an increase in hobbies,” he said.
“Where do local collectors go to shop? They want to go to the local hobby and toy store.”
“All I want for Christmas is Robux”
Viral YouTube video entitled “All I Want for Christmas is Robux” made the rounds on the Internet a few years ago. The melodic parody of Mariah Carey's Christmas carol is dedicated to the in-game currency of the online game Roblox called Robux.
Again, it's just a video, but like Toy Story 5tablet, it tells a deeper story about what toys do many children want?. Parent forums are rife with complaints about their children asking for Robux, calling it an “invisible gift”, and often offering gift cards for in-game currency for stocking fillers.
Meanwhile, several top toys lists for this holiday season includes Nintendo Switch 2 + Mario Kart World bundle for $700 and new research from Entertainment Software Association says more than half of the roughly 700 children surveyed plan to ask for video game content this Christmas.
But as the traditional toy industry has suffered from this surge, there is now also an “awakening” as we learn more about screen time and development, and parents look for alternatives such as traditional games. said Stevens of Retail Prophet.
Still, when faced with the convenience of Amazon, any retailer, toys or not, needs to ask itself what it offers shoppers that other retailers don't, Stevens says.
That's why we're now seeing some toy stores focusing more on experiences and games—where you can go to have fun with your child,” he said. For example, in Calgary, Cherry Tree Lane Toys hosts events and offers. birthday party packages. Minotaur in Kingston, Ontario takes place weekly. craft evenings and game nights twice a week.
“Stores that sell goods are dying. Stores that sell experiences are growing,” Stevens said.
Perhaps that's why Toys 'R' Us said in an email to CBC News that part of its strategic changes includes expanding its new free-to-buy arcade and “birthday parties” at many stores.
Changes in consumer behavior have had a major impact on the toy industry, especially small businesses. Toy sales are down across the country, but Calgary toy stores are hoping creativity will help attract customers.
