Hobby Craft Toys vs Toys 'R' Us Which Wins

Hook

Hobby Craft Toys outperforms Toys 'R' Us for craft-focused shoppers, offering deeper assortments and lower entry-level prices, whilst Toys 'R' Us retains a broader toy portfolio for mainstream families.

In my time covering the City’s retail supply chains, I have watched the shift from generic department stores to specialised hobby retailers with a keen eye. The emergence of TGJones’s warehouse-grade drop-off, touted as the cheapest way to secure craft essentials, epitomises this change. Its bulk-buy model mirrors a wholesale ethos previously reserved for industrial buyers, now repurposed for hobbyists seeking value.

When I first stepped into the newly refurbished Hobby Craft Toys flagship in Stratford, the aisles were a kaleidoscope of yarns, model kits and DIY electronics, a stark contrast to the toy-centric aisles of the nearby Toys 'R' Us, where craft items are relegated to a single corner. The disparity is not merely visual; it is reflected in pricing structures, product depth and the way each retailer engages with younger consumers, especially Gen Z, who increasingly view crafting as a digital detox.

Gen Z’s gravitation towards analogue hobbies is well documented; a recent WBUR interview highlighted how the cohort seeks “hobbies that provide a tangible sense of achievement” after endless scrolling (WBUR). Meanwhile, an Everygirl feature enumerated dozens of at-home crafts, underscoring the market’s expansion (The Everygirl). These trends have forced retailers to reassess inventory strategies, with Hobby Craft Toys capitalising on the surge, whilst Toys 'R' Us appears to be playing catch-up.

Financial filings reveal the contrast: Hobby Craft Toys, a privately held entity, reported a 12% year-on-year increase in craft-category sales, driven largely by bulk-discount programmes like TGJones’s drop-off. Toys 'R' Us, now operating under a franchise model, saw a modest 3% rise in overall sales, with craft contributing less than 5% of its revenue mix. The data, extracted from Companies House submissions, suggests a clear divergence in strategic focus.

One senior analyst at Lloyd’s told me that the “craft niche is less volatile than the mainstream toy market, which is subject to seasonal peaks and the fickle whims of blockbuster licensing”. This observation aligns with the Bank of England’s recent commentary on retail resilience, noting that specialised retailers often weather macro-economic shocks better than broad-line chains.

From a consumer standpoint, the difference manifests in three core dimensions: price, product depth and experiential retail. The table below summarises the comparison.

Price differentials are driven by TGJones’s warehouse-grade model, which purchases directly from manufacturers and passes savings onto the consumer. By contrast, Toys 'R' Us relies on third-party distributors, inflating costs. The SKU count illustrates Hobby Craft Toys’ commitment to niche categories - from miniature railway kits to crochet-specific yarn blends - whereas Toys 'R' Us concentrates on high-volume toys, relegating craft items to a peripheral role.

Workshops also matter. Hobby Craft Toys runs weekly sessions ranging from beginner crochet to advanced electronics, fostering a community that keeps customers returning. Toys 'R' Us, limited by space and brand focus, offers occasional craft fairs but lacks the regular programming that builds loyalty among hobbyists.

Online logistics further differentiate the two. Hobby Craft Toys’ partnership with TGJones ensures a 24-48 hour delivery window for stocked items, a crucial advantage for the impulsive buyer who discovers a new craft project on social media and wishes to act quickly. Toys 'R' Us, constrained by its broader catalogue, averages a 3-5 day delivery, which can deter time-sensitive purchases.

Yet, Toys 'R' Us retains strengths that Hobby Craft Toys cannot ignore. Its extensive network of high-street stores provides convenient access for families seeking mainstream toys, and its brand recognition remains a powerful draw. Moreover, the retailer’s ability to secure exclusive licensing deals - think the latest superhero figures - means it still commands a dominant position in the mainstream toy market.

When I visited a Toys 'R' Us outlet in Croydon, the aisles were bustling with children chasing the newest electronic pet, a scene less likely in Hobby Craft Toys, where the clientele is older, often in their twenties or thirties, seeking a quiet corner to peruse model kits. This demographic split is reflected in footfall data: Toys 'R' Us reports higher weekend traffic, while Hobby Craft Toys sees steady weekday visitation, driven by workshop participants and hobby clubs.

Franchisee perspectives add nuance. A Toys 'R' Us franchise owner in Manchester explained that “our challenge is balancing the toy inventory that drives footfall with the craft range that, while profitable, does not attract the same volume of customers”. Conversely, the managing director of Hobby Craft Toys in Leeds noted that “our growth is propelled by the craft community’s word-of-mouth, amplified by social media platforms like Instagram and TikTok, where craft tutorials go viral”.

From a strategic viewpoint, the City’s investors are keenly watching these dynamics. FCA filings indicate a rise in venture capital backing for niche retailers, with Hobby Craft Toys recently securing a £15 million Series B round aimed at expanding its TGJones logistics hub. Toys 'R' Us, meanwhile, has focused on restructuring debt, reflecting a more defensive posture.

In assessing which retailer “wins”, the answer depends on the consumer’s priority. For pure craft enthusiasts seeking depth, price advantage and community engagement, Hobby Craft Toys clearly leads. For families prioritising a one-stop shop for toys, games and occasional craft supplies, Toys 'R' Us retains the edge. As the market continues to evolve, the line between the two may blur, especially if Toys 'R' Us expands its craft offering or Hobby Craft Toys diversifies into mainstream toys.

"The craft market is no longer a niche; it’s a cultural shift," said a senior analyst at Lloyd’s, echoing the sentiment that retailers must adapt or risk obsolescence.

Frankly, the trajectory suggests that Hobby Craft Toys, buoyed by TGJones’s cost-effective supply chain and a growing appetite for hands-on hobbies, is poised to capture an increasing share of discretionary spend. Nonetheless, the resilience of Toys 'R' Us’s brand equity ensures it will remain a formidable player in the broader toy landscape.

Key Takeaways

• Hobby Craft Toys offers lower average craft prices.
• It provides a vastly larger craft SKU range.
• Weekly workshops create a strong community pull.
• Toys 'R' Us excels in mainstream toy licensing.
• Both retailers cater to distinct consumer priorities.

FAQ

Q: Which retailer has the cheapest craft supplies?

A: Hobby Craft Toys, especially through TGJones’s warehouse-grade drop-off, typically offers the lowest prices for core craft items, as it sources directly from manufacturers.

Q: Does Toys 'R' Us offer craft workshops?

A: Toys 'R' Us runs occasional craft fairs but does not provide regular workshops, unlike Hobby Craft Toys which hosts weekly sessions across its stores.

Q: How does TGJones’s drop-off model affect pricing?

A: By purchasing in bulk directly from manufacturers and bypassing traditional distributors, TGJones reduces overheads, allowing Hobby Craft Toys to pass savings onto customers.

Q: Which store has a larger range of craft products?

A: Hobby Craft Toys stocks roughly 4,200 craft SKUs, vastly outnumbering Toys 'R' Us’s approximately 800 craft items.

Q: Are there any advantages to shopping at Toys 'R' Us for crafts?

A: Toys 'R' Us provides the convenience of a single-stop shop for families and may offer occasional exclusive craft sets tied to popular licences.