Canadian Children's Book Market

Part
01
of twelve
Part
01

Walmart Canada - Share of the Children's Book Market

Walmart and other non-traditional book stores sold an estimated 3.8 million children books in Canada.

CANADA'S CHILDREN'S BOOK MARKET

  • According to calculations using data from a report on the Canadian book market, Walmart and other non-traditional book stores sold an estimated 3.8 million children books in Canada.

CANADA'S BOOK MARKET

  • Canada's book industry reached a total revenue of $1.1 billion in 2018. In 2018, Canadian retailers sold about 54 million units of books.
  • Thirty-nine percent (39.4%) of those sales were of juvenile and young adult books. According to calculations using these data, Canadian retailers sold an estimated 21.3 million units of children books in 2018. Juvenile and young adult titles are 29.1% of the total value of the Canadian book market.

ADDITIONAL FINDINGS

  • Approximately 18% of the Canadian retail book market is non-traditional bookstores like Costco, Walmart, and other chain stores (e.g., supermarkets, drug, and hardware stores). A report from Hill Strategies indicates that almost 77% of Ontarians aged 15 years or older read at least one book in 2016.

RESEARCH STRATEGY

We began our investigation with an inquiry into reports and databases concerned with the Canadian book industry (e.g., IBISWorld, McKinsey, MarketsandMarkets, and others). While this avenue yielded a substantial amount of data regarding market size and growth, it revealed no data on Walmart's share of the children's book market in Canada. Our next strategy was to inquire into Walmart's corporate website for any documentation (e.g., annual reports, press releases, executive statements, et al.) that would reveal revenue from or units sold of children's books in Canada. Unfortunately, Walmart does not publicly separate its revenue data by item category.

Our next avenue of inquiry involved the sites of Canadian book publishers and retail associations (e.g., Association of Canadian Publishers, Booknetcanada, and others). However, the only data these sources yielded concerned Canada's overall book market. Our fourth strategy involved a calculation of the data using the information yielded in our previous searches.

According to the data, Canadian retailers sold roughly 54 million books in 2018. Approximately 39.4% of those books were juvenile and young adult titles. With the assumption that juvenile and young adult novels include children's books, we calculate that the market share (by total books sold) of children's books in Canada is: 54,000,000 X 39.4% = 21,276,000 = 21.3 million.

Our next step was to calculate Walmart's share of the market. According to the data, stores like Walmart composed roughly 18% of Canada's retail non-traditional bookstore market in 2016. With the assumption that there was no change in percentage between 2016 and 2018, we calculate the number of children's books sold by retail non-traditional bookstores is: 21,300,000 X 18% = 3,834,000 = 3.8 million.
Part
02
of twelve
Part
02

Amazon Canada - Share of the Children's Book Market

Amazon's children's book revenue in Canada in 2018 was $208.032 million, which is a 48% market share of the total market in the nation ($433.4 million).

Canadian Childrens Market

  • In 2018, the total revenue for the book industry in Canada reached $1.1 billion.
  • There were 54 million books purchased with a total of 867,000 ISBNs being produced that year.
  • Of this total, children's books accounted for 39.4% of books sold in Canada.
  • Therefore, the children's book market in Canada in 2018 was worth an estimated $433.4 million (39.4% of $1.1 billion).
  • Almost half (48%) of Canadians have purchased books exclusively on Amazon in the past 12 months.
  • Hence, the amount of revenue produced from the children's book market in Canada in 2018 was valued at an estimated $208.032 million (48% of $433.4 million).

Insights

  • The two most popular children's books sold in Canada in 2018 was "The Wonky Donkey" illustrated by Katz Cowley and authored by Craig Smith and "Dog Man and Cat Kid" written by Dav Pilkey.
  • Amazon was also the most popular online store for purchasing baby and kids items in Canada based on revenue.
  • In 2018, authors across the globe earned over $260 million in book sales on Amazon.
  • Amazon Canada has a 1% market share of total retail sector sales in the country.
  • Therefore, Canadian authors made $2.6 million (1% of $260 million) in revenue in 2018.
  • In the electronics and media segment in Canada, Amazon continues to lead the market with a share between 25-30%.

Research Strategy:

To determine Amazon's share of the market in Canada, we first determined the market size of the children's book market in the country. In Canada, the book market was worth $1.1 billion in 2018, of which 39.4% came from children's books, according to BookNet Canada. Therefore, the children's book market size in Canada is $433,400,000 (39.4% of $1,100,000,000).

We then searched through trusted news sources, Amazon's internal revenue and investor documents, and industry expert reports to determine the company's sales for children's books in Canada. This information was not directly available in the public domain. Therefore, we increased the scope of our research to attempt to triangulate this data.

We were able to determine that around 48% of Canadians have purchased a book exclusively from Amazon in the past 12 months, which would give Amazon a 48% share of the children's book revenue worth $208,032,000 (48% of $433,400,000).

Afterward, we continued our research to locate additional insights. In 2018, Amazon was able to generate $260 million in sales for authors worldwide through the Kindle Direct Publishing Select Global Fund. We then determined the percentage of sales Canada has contributed to Amazon's revenue, and discovered that since Amazon.CA is a relatively new feature, the company merely accounts for 1% of sales generated by the retail sector in Canada. The amount of revenue Amazon has generated from book (any type) sales was $2.6 million (1% of $260 million). Since this amount was the overall book revenue of Canadian books of any type on Amazon, we continued our search to discover what percentage or amount of this would be children's books.

However, we were unable to triangulate the data further.

Part
03
of twelve
Part
03

Indigo Canada - Share of the Children's Book Market

After an exhaustive search through credible sources, it appears that information on the market share of Indio in the children's book market in Canada is unavailable in the public domain.

Helpful Findings

  • In 2017, about 40% of all the books sold in Canada were for juvenile readers.
  • Around 20.5 million books for young readers were sold in 2017.
  • The value of books for young readers decreased by 5%. In 2017, the genre registered the weakest gain in value over 2016 as it produced $295.8 million in the previous year and approximately $303.3 million in 2017.
  • Online sales generated more than half (52%) of the total book sales in 2017.
  • Around 26% of book sales occurred in chain stores.
  • The overall Canadian book market sold 51 million units and accounted for about 835,000 ISBNs, attaining a total value of CND $1 billion, or US $778.6 million, in 2017, according to BookNet's report.
  • According to Indigo's 2019 annual report, their total revenue in the month of March was about USD $1.046 billion.
  • The Canadian book retail market share in 2016 includes: 33% on-line Amazon, 38% Indigo/Chapters/Coles, 18% non-traditional bookstore market (e.g., Walmart, Costco, drug store chains, supermarkets, and hardware chains), 5% Library wholesalers, 6% independently-operated bookstores.
  • According to Newswire, Indigo Books is the largest specialty toy, gift, and book retailer in Canada. It registered a total comparable sales improvement of about 2.4% for Q1 2019, which included online and comparable store sales.
  • Vancouver Kids Books serves as the leading independent children’s books establishment in Canada.

Research Strategy:

Our research began by searching for data on the percentage of market share through trusted media sites such as Forbes, BookNet Canada, Publishing Perspectives, and others. We wanted to find articles mentioning Indigo Canada's market share in the region. Although we found some relevant insights about the company, none were specifically addressing the market share in Canada, or the children's books category. Instead, we found articles providing an overview of the book market in Canada and the reinvention of book selling by the Canadian chains by Newshelves and the New York Times.
We then changed tactics and searched for customer usage of Indigo's children's books in the Canadian market through consumer surveys or the company's annual reports. We wanted to find consumer preferences around children's books against other booksellers and compare them to find a percentage. For instance, if we discovered that a given percentage of consumers bought books from Indigo over Scholastic, it would provide us with helpful insights on the company's market share. Although we found some information about the book market in Canada, it was not focused on the market share of companies or categories but book genres such as novels, science fiction, etc. We identified consumer trends and financial reports, including an overview of the literary market by Livres Canada Books and Indigo's annual report, which did not yield useful information.

Afterward, we attempted to triangulate the usage of Indigo's children's books in the Canadian market using information found in earlier strategies. We thought we could unearth insights about the book market in Canada through various sources to determine Indigo's market share, and from there, ascertain the share of its children's book division. Unfortunately, there were limited figures or percentages available to help us with a triangulation. While, we came across information on the book market in Canada and the book retail market share, we were unable to locate additional factors to calculate the percentage of children's books.

Finally, we explored for the CEO of Indigo or other C-level executives' declarations or statements about the company and its market share. We scoured specialized magazines, trusted media sources, and journals such as Retailing Insight Magazine, along with the bookseller directly. Though we uncovered some information on the company's financial statements and data on the company's presence in the Canadian market, they were not focused on the children's book market. We came across publications detailing the country's overall book market (BookNet Canada) and non-relevant reports from Publishing Perspectives.

Due to the unavailability of relevant data, we were unable to provide the share of the market Indigo maintains in the children's book market in Canada.
Part
04
of twelve
Part
04

Mastermind Canada - Share of the Children's Book Market

Unfortunately, there was not enough information to provide Mastermind's market share in the Canadian children's book market, the research team gathered the available data to provide key insights: Juvenile and Young Adult books accounted for 39.4% of the C$1.1 billion revenue generated by the Canadian book market in 2018. Moreover, 26% of books in Canada were purchased from chain stores.

HELPFUL FINDINGS

RESEARCH STRATEGY

To determine Mastermind's share of the market in Canada, we first determined the market size of the children's book market in the country. The book market in Canada was worth $1.1 billion in 2018, of which 39.4% came juvenile and young adults books, according to BookNet Canada. We assumed that this category encompassed the children's book market, therefore, the children's book market size in Canada is $433,400,000 (39.4% of $1,100,000,000).

We then searched through Mastermind's website for internal revenue and investor documents, press releases and annual reports hoping to unearth the company's sales for children's books in Canada. Unfortunately, this information was not directly available in the public domain, instead we found information on their growth and expansion in the country.

Secondly, we changed gears and looked into reports and databases concerned with the Canadian book industry such as, IBISWorld, McKinsey, MarketsandMarkets, and others. We hoped to find data on the market share of childrens' books in Canada. While this avenue yielded a substantial amount of data regarding market size and growth, it revealed no data on Mastermind's share of the children's book market in Canada.

Finally, we searched through Canadian resources that are focused on the book market such as Publishing Perspectives, BookNetCanada, and the Canadian Booksellers Association. We also looked at sites that provide analytics on the Canadian retail sector including the Retail Council of Canada. We were hoping to find information regarding the players in the Canadian children's book market that would answer the question or provide data points that would enable the research team to triangulate the required data. We did manage to find some useful data that would enable us to determine the market size of the Canadian children's book market and the sales by chain stores such as Mastermind. But without Mastermind's sales information, it was not possible to determine its market share in the Canadian market. Therefore, the research team provided some useful data on the overall Canadian children's book (and overall book) market.
Part
05
of twelve
Part
05

Toys R Us Canada - Share of the Children's Book Market

After an extensive research through industry-related websites, business resources websites, and news websites, it appears that information about the share of Toys R Us in the Canada's children's book market are not available in the public domain. The reason behind lack of data is presumably because Toys R Us Canada is focused more on toys and baby products than on books. However, the research team was able to gather valuable insights on Canada's children's book market and Toys R Us Canada.

HELPFUL FINDINGS

CANADA'S CHILDREN'S BOOK MARKET

  • According to BookNet Canada, the book market in Canada was worth $1.1 billion in 2018, of which 39.4% came from juvenile and young adult books. Therefore, the children's book market size in Canada is $433.4 million.
  • Canadian retailers sold roughly 54.7 million books in 2018, of these books, 39.4% still represented juvenile and young adult books. Therefore, the total number of juvenile (including young adult) books sold in Canada was 21.55 million in 2018.
  • The average number of books read by children and teenagers in various regions of Canada annually are: 30 in Alberta, 25 in British Columbia, 21 in Ontario, 19 in Quebec, and 24 in other regions.
  • Juvenile books sales in Canada was $300.3 million in 2017.
  • In 2017, about 26% of books were purchased from chain stores which would include Toys R Us which has about 80 stores in Canada.

TOYS R US CANADA

  • Toys R Us Canada has sub segment of books under Educational Toys as primary segment but not as major segment.
  • The director of retail and business development of Toys R Us, Mr. Patty Sullivan, stated that Toys R Us book sales continued to increase over last year but did not detail on Canada book sales with statistics.
  • In 2017, Toys R Us reported on the revenue generated in Canada (i.e., 821 million) but no segmentation on market share or revenue specific to books were provided.
  • In 2018, Toys R Us Canada was acquired by Fairfax Financial Holdings Limited.


RESEARCH STRATEGY

To determine Toys R Us Canada's share of the market in Canada, we first determined the market size of the children's book market in the country. The book market in Canada was worth $1.1 billion in 2018, of which 39.4% came juvenile and young adults books, according to BookNet Canada. We assumed that this category encompassed the children's book market, therefore, the children's book market size in Canada is $433,400,000 (39.4% of $1,100,000,000).

We then searched through Toys R Us Canada's website for internal revenue and investor documents, press releases and annual reports hoping to unearth the company's sales for children's books in Canada. Unfortunately, this information was not directly available in the public domain, instead we found broader insights such as the 2017 Toys R Us Annual Report where revenue generated in Canada was specified, but segmentation on market share details or revenue specific to books that could allow us to triangulate further were not provided. We also found that in 2018, Toys R Us Canada was acquired by Fairfax Financial Holdings Limited so we tried looking into financial reports by the latter. Unfortunately, the reports of Fairfax Financial Holdings Limited did not detail on Toys R Us Canada book sales or units sold, and/or market share.

Secondly, we changed gears and looked into reports and databases concerned with the Canadian book industry such as, IBISWorld, McKinsey, MarketsandMarkets, and others. We hoped to find data on the market share of children's books in Canada. While this avenue yielded a substantial amount of data regarding market size and growth, it revealed no data on Toys R Us Canada's share nor for any other players of the children's book market in Canada.

Finally, we searched through Canadian resources that are focused on the book market such as Publishing Perspectives, Publishingweekly, BookNetCanada, and the Canadian Booksellers Association. We also looked at sites that provide statistics on the Canadian retail sector including the Retail Council of Canada. We were hoping to find information regarding the players in the Canadian children's book market that would answer the question or provide data points that would enable the research team to triangulate the required data. While some useful data that would enable us to determine the market size of the Canadian children's book market and the sales by chain stores such as Toys R Us were found, without Toys R Us Canada's sales information, it was not possible to determine its market share in the Canadian market.
Part
06
of twelve
Part
06

Costco Canada - Share of the Children's Book Market

While there was not enough information to provide Costco's market share in the Canadian children's book market, the research team gathered the available data to provide key insights: Juvenile and Young Adult books accounted for 39.4% of the C$1.1 billion revenue generated by the Canadian book market in 2018. Additionally, 26% of books in Canada were purchased from chain stores.

FINDINGS

  • The Canadian book market reported C$1.1 billion in 2018 from sales of about 54 million units.
  • Juvenile and Young Adult books accounted for 39.4% of the C$1.1 billion revenue.
  • In 2017, about 26% of books were purchased from chain stores which would include Costco which has about 100 stores in Canada.
  • According to Costco's 2018 Annual Report, Canadian sales accounted for about $20.7 billion of Costco's $141.6 billion revenue in 2018.
  • Food and Sundries, Fresh Foods, Softlines, Hardlines, and Ancillary accounted for 41%, 14%, 11%, 16%, and 18% of Costco's revenue in 2018.

RESEARCH STRATEGY

To provide Costco's market share in the Canadian children's book market, we began our research by searching through Costco's annual reports and other financial statements. Our intention was to use any information pertaining to the revenue from the sales of children books (or books in general) in Canada to determine the company's market share in Canada. We found the company's revenue generated by its Canadian business as well as its five business segments i.e. Food and Sundries, Fresh Foods, Softlines, Hardlines, and Ancillary. However, it was not possible to determine the revenue generated by its children's book sales since there was no further breakdown of the four segments.

Next, we explored Costco's official portals and communication channels including its press releases. Our research was focused on trying to find out whether the company had provided any information regarding its children's books sales. We also scoured through Canadian, American, and global news resources in the hope that they communicated any information on Costco's market share in the Canadian children's book market or its overall performance e.g. units sold or revenue. Again, our efforts were fruitless as there was no readily available information or any quantitative data that could aid us in determining the required information.

Third, we searched through Canadian resources that are focused on the book market such as Publishing Perspectives, BookNetCanada, and the Canadian Booksellers Association. We also looked at sites that provide analytics on the Canadian retail sector including the Retail Council of Canada. Our hope was to find information regarding the players in the Canadian children's book market that would answer the question or provide data points that would enable the research team to triangulate the required data. We managed to find some useful data that would enable us to determine the market size of the Canadian children's book market and the sales by chain stores such as Costco. But without Costco's sales information, it was not possible to determine its market share in the Canadian market. Therefore, the research team provided some useful data on the overall Canadian children's book (and overall book) market.
Part
07
of twelve
Part
07

Scholastic Canada - Share of the Children's Book Market

The number of juvenile (including young adults) books sold in 2018 was 21,551,800 which is 39.9% of the total books sold in 2018. Scholastic Canada sold 173,077,031 books out of which the number of juvenile books (including young adults) sold was 151,525,231.

SHARE OF THE CHILDREN BOOK MARKET IN CANADA

  • In 2018, the total number of books sold in Canada was, 54.7 million at a value of $1.13 billion.
  • Juvenile (including Young Adult) books were 39.9% share of the total sales in Canada.
  • Therefore, the total number of juvenile (including young adult) books sold in Canada was 21,551,800 in 2018 (39.4% of 54,700,000).
  • Juvenile books sales in Canada was $300.3 million in 2017.
  • Scholastic Canada generates an approximate $357.13 million annually.
  • Therefore, out of the 54.7 million books sold in Canada in 2018, Scholastic Canada sold approximately 173,077,031 books.

RESEARCH STRATEGY

In order to provide the share of the market that Scholastic has in Canada, we first looked for information to provide the market share of the country. We then searched through the relevant reports and business databases such as MarketWatch, Crunchbase and others. While these avenues provided substantial amount of data regarding market size and growth, there was no data on Scholastic Canada's share of the children's book market. Our next strategy was to inquire into Scholastic Canada's website for any information such as annual reports, press releases and executive statements, that would reveal revenue from or units sold of children's books in Canada. Unfortunately, Scholarstic Canada does not publicly disclose its financial information to the public.

According to the information found on Booknet, the total number of books sold was 54,700,000 in 2018 out of which 39.9% represents juvenile (including young adult) books that were sold the same year. We found the number of juvenile books sold in 2018 to be 21,551,800 by (39.4%*54,700,000).

We searched through the companies website and other sources for information to determine the market share of Scholastic Canada. A search into Canadian, American, and global news resources to find out if they communicated any information on Scholastic Canada's market share or its overall performance e.g. units sold or revenue, was not fruitful. There was no readily available information or any quantitative data that could aid us in determining the required information.

We were able to find Scholastic Canada's annual revenue information from Dun&Bradstreet, a business database. The approximate annual revenue for Scholastic Canada is $357,130,000. We determined the total number of books sold by Scholastic in Canada to be 173,077,031 books by ($1,130,000,000*54,700,000/357,130,000).

After finding the above figures, we were also able to determine the total number of juvenile (including young adults) books sold to the Canadian market to be, 151,525,231 books by (173,077,031–21,551,800).
The revenue information for Scholarstic Canada was very useful as it enabled us to determine the market share on the children book market in Canada.

CALCULATIONS

  • The total books sold in 2018 was 54.7 million
  • Juvenile books represented 39.9% of the total books sold in 2018
  • Therefore, the number of Juvenile books sold was, (39.4%*54,700,000) = 21,551,800 juvenile books.
  • The approximate annual revenue for Scholastic Canada is $357,130,000
  • The total number of books sold in Canada in 2018 was 54,700,000
  • The total revenue generated was $1,130,000,000
  • Hence, the total number of books sold by Scholastic Canada was, ($1,130,000,000*54,700,000/357,130,000)= 173,077,031 books.
  • Therefore, total number of juvenile books sold by Scholastic Canada was, (173,077,031–21,551,800) = 151,525,231 books.




Part
08
of twelve
Part
08

Competitive Landscape - Walmart and Amazon

Both Walmart and Amazon are very popular in Canada. They each have similar products, but services which differ. Their target markets are likewise very similar however, they have some differences in their competitive advantage.

WALMART


PRODUCTS AND SERVICES OFFERED

COMPETITIVE ADVANTAGE

TARGET MARKET

AMAZON


PRODUCTS AND SERVICES OFFERED
SERVICES
  • Amazon Services in Canada include Amazon Web Services which include online tech talks, events and webinars, AWS Partner Network, and Cloud Solutions. The company also offers Amazon Prime, Amazon Prime Video, Amazon Music, and Prime Student.
  • Amazon Canada currently provides to its customers lawn and garden items, musical instruments, sporting goods, tools, automotive items, toys and games, health and personal-care items, industrial and scientific supplies, kitchen items, jewelry and watches, books, DVDs, music CDs, videotapes, and software, apparel, baby products, consumer electronics, beauty products, gourmet food, and groceries,

COMPETITIVE ADVANTAGE
  • Amazon has a variety of competitive advantages in Canada and worldwide. Firstly, it gives customers more quality and quantity of money.
  • Amazon offers incredible price, fast delivery, and reliable services. The company has also mastered how to get customers and keep them.
  • It offers a wide variety of products and services, operates an effective supply chain, and on top of that ensures that it delivers exceptional customer service. These things assist the company in maintaining its competitive superiority.
  • The company also ensures that it always enter into new segments and niches. It only started selling books but now sells everything that can be sold.
  • Hence, one of the bases of Amazon’s competitive advantage is sophisticated global logistics. It also continuously strengthens its database of merchants, app developers, reviewers, and writers.
  • Amazon also has a competitive advantage because, since its inception, it has been positioning its brand in the mind of the consumer by becoming a leader in the products and services that it offers, and offering a variety of new products and services such as Amazon Prime and Amazon Kindle.
  • This allows the company to offer items that are unique to them. The company also spent the time to find a niche market. They work on smaller segments and then move on to larger markets. This applies to Canada and the globe.
  • Also, Amazon’s position as an online store allows it to offer extraordinary convenience, a wide range of selections, and instant access. This is combined with extremely low prices. The company sells products with a low-profit margin and in turn sells many products and services.
  • Another great competitive advantage is that the company as a 30-day return policy as online shopping is filled with uncertainty.
  • The company also offers personalized shopping to individual customers. They started doing this when no other company was. Amazon’s algorithms comprehend the customer's unanticipated needs, wants and desires, hence customizing the shopping experience.
  • Amazon a brand image built on trust, advanced technology which offers customers personalized shopping, a large customer base of millions, financial strength, a great leadership strategy, and international presence.
  • The company also has one of the most organized and largest supply and distribution channels.
TARGET MARKET
  • Amazon targets a wide variety of customers in Canada and worldwide.
  • As it relates to demography, Amazon targets both males and females, 18 years and older who are students employees or professionals. These people seek a wide range of products, at competitive prices, with the advantage of online purchasing. Their personalities are easy-going and ambitious.
  • As it relates to psychography, Amazon targets all social classes. As it relates to their lifestyle, Amazon targets the resigned, struggler, mainstreamer, aspirer, succeeder, explorer, and reformer.

RESEARCH STRATEGY

To find information for this research, we searched for the specific heading under Walmart and Amazon separately. For Walmart, we did four main searches in its Overview, Products and Services, Target Audience, and Competitive Advantage. There was no real specific information to Canada as under all these headings the information would be general to all locations. We searched for information on the company pages, news platforms, blogs, and research platforms.

The same basic strategy was used to find information from Amazon. Four searches were done on the four main headings: overview, products and services, target audience, and competitive advantage from the company pages, news platforms, blogs, and research platforms. As with Walmart, there was not much specific information in Canada as the company offers the same level of services and products worldwide with the same target audience and competitive advantages.

Part
09
of twelve
Part
09

Competitive Landscape - Mastermind, Toys R Us, and Scholastic

Mastermind Toys offers children's books and specialty toys and their target market is kids, teachers and corporate organizations. Toys "R" Us Canada offers toys and baby products across different categories, with their target market being kids, kids at heart, parents and grand-givers. Scholastic Canada offers books, classroom materials and educational software and their target market includes parents, teachers and children. It is the only major Canadian publisher that simultaneously publishes children’s books in both of Canada's official languages.

MASTER MIND

  • Mastermind Toys was founded in 1984 in Toronto, as a store selling home computers and educational software.
  • It is now "Canada’s largest privately owned, specialty toy and children’s book retailer", selling online as well as in 65 locations in eight provinces across Canada.
  • Mastermind Toys offers a "handpicked selection of over 4,000 children's book titles and over 6,000 specialty toys."
  • The premium brands they offer include LEGO, ALEX, Ty, BRIO, Our Generation Dolls, Creativity for Kids, Kapla Blocks, PLAYMOBIL, and Trains and Ravensburger Puzzles, among others.
  • For all in-store purchases they offer complimentary gift-wrapping, and for online purchases they offer gift tags and gift-wrapping at a nominal fee.
  • Mastermind Toys is Canada’s largest children's book and specialty toy and retailer, offering hand-selected and top quality toys, games and books from the best brands globally.
  • They are also the first major retail toy store to wrap gifts in their signature wrapping paper for free, a service that they have been offering since 1989.
  • In addition, they are constantly looking for ways to connect with their customers in the face of competition in the Canadian retail landscape, including their recently launched ‘Mastermind Toys Perks’ loyalty program as well as the click-and-collect option.
  • Mastermind Toys' target market includes kids and grownups.
  • They also support Canadian teachers by giving them a 10% discount to stick their classrooms and day cares with books, learning aids and educational toys. In addition, they target corporate organizations such as schools and childcare organizations with special perks including discounts and free gift wrapping.

TOYS "R" US

SCHOLASTIC



Part
10
of twelve
Part
10

Competitive Landscape - Indigo and Costco

Indigo is a company that offers books, toys, gifts and other products and have a strong commitment to battling the lack of elementary school libraries' funding in Canada. Costco boasts to have a slimmer selection of products than typical grocers but their quality selection is what gives their stores a competitive advantage. Both companies target grocery shoppers and parents.

INDIGO

  • The company states to be the world's first cultural department store that has locations in all Canadian provinces and one territory and an award-winning online experience.
  • Indigo is "Canada's largest purveyor of ideas and inspirations" and offer books, eReading, specialty toys, gifts, gourmet confections, electronics, and lifestyle enhancing products.
  • The company employs over 7,000 people across Canada, and also has a retail store in New Jersey. They have 89 superstores under the brand names of Chapters and Indigo, and 113 stores under the banners of Coles, Indigospirit, and The Book Company.
  • They also operate their popular online destination offering millions of products.
  • Indigo Love of Reading Foundation is committed to addressing the underfunding of Canada's elementary school libraries and the resulting literacy challenges that issue brings to children in public schools.
  • The Foundation provides a $1.5 million annual contribution and grassroots Adopt a School program to unite Indigo staff, schools, and communities for new and engaging books. To date, they have donated over $31 million to more than 3,000 Canadian elementary schools.
  • IndigoKids was started in 2009 as a result of their growing kids and toy business with a focus on books, creative play and specialty toys.
  • In 2016, the IndigoKids was offered in all 86 large format locations, and a further expanded assortment was made available online. They offer the first free in-store gift wrap service for all kids' gifts and is the exclusive retailer of American Girl in Canada, currently with seven specialty boutiques and selling their entire assortment online.

COSTCO

  • Costco opened the largest Canadian store at 17,000 square meters and has 1,000 parking spaces and 24 gas pumps.
  • The store is located in a subdivision of St. John's, N.L. despite concerns about traffic and possible motorist confusion. People were in line as early as 4 am for the grand opening.
  • As of July, Costco launched an online grocery store in Canada starting with stores in southern Ontario. They started on a small scale to ensure they can provide a quality level of service when it rolls out throughout the rest of Canada.
  • Net grocery sales for Costco in Canada increased by 9% in 2018, up from 5% in 2017.
  • In just the second quarter of 2018 the company's profits increased by 7% year over year to $35.40 driven by increase in membership fees, high value options, low cost, and productivity savings.
  • Costco is credited with taking sales from traditional Canadian grocers, in addition with Walmart and Dollarama the group sales were up 15% versus traditional stores.
  • Costco's growth is due to their successful and ongoing food expansion and they have 11% of market share of grocery sales.
  • Costco warehouses carry 4,000 SKUs chosen for their quality, price, brand, and features making their selection unique compared to the 30,000 products found at most supermarkets.
  • They created Kirkland Signature, their signature brand to control every aspect of their products from freshness, ingredients, production, packaging and more.
  • Costco offers products like appliances, automotive products and tires, baby and kids clothes and toys, clothing, luggage, handbags, computers, electronics, urns and caskets, furniture and mattresses, gift cards, tickets, flowers, grocery, household, health and beauty products, home and kitchen products, jewelry, watches, sunglasses, office products, patio and lawn and garden products, pet food and supplies, sports and fitness items including bikes and saunas among many others, and home improvement items.
  • The company has over 10 million members in Canada.
  • Costco has Canadian community initiatives to include major donations to Children's Hospitals, back-pack programs that give children at in-need schools backpacks, a reading program where Costco volunteers tutor children from local schools, supporting the Community Safety Net through an annual United Way Campaign, and Breakfast Clubs of Canada which is a collaboration that reaches 1,600 schools and help more than 204,000 Canadian children.


Part
11
of twelve
Part
11

Market Size - Canadian Children's Book Market

In 2018, the number of children (juvenile) books sold in Canada was 21,551,800, representing 39.4% of all books sold.

FINDINGS

CALCULATIONS

  • Total books sold in 2018: 54.7 million
  • Juvenile books represented 39.4% of the total books sold in 2018. Therefore, the number of juvenile books sold:
=(39.4/100*54,700,000) = 21,551,800 juvenile books

Part
12
of twelve
Part
12

Market Growth - Canadian Children's Book Market

The market for children's books in Canada grew by 18.4% from 2014 to 2016. From 2016 to 2018, the market grew by 22.13%. The number of books sold from 2016 to 2018 increased by 4.07%.

The Base Numbers

  • In 2016, 19.9 million children's books were sold in Canada with a retail value of $298.5 million in sales.
  • In 2017, 20.5 million children's books were sold in Canada with a retail value of $300.3 million in sales.
  • In 2018, 54.7 million books were sold in Canada at a value of $1.13 billion.
  • Of those sales, 39.4% were for children's books.
  • That means there were 21,551,800 children's books sold in 2018, for a value of $445.2 million.

Growth Rate

From 2014 to 2016, the sales revenue of children and juvenile books grew by 18.4%
From 2016 to 2018, the sales revenue of children and YA books grew by 22.13% (calculated).
From 2016 to 2018, the number of books sold increased by 4.07% (calculated).

Calculations

  • Using the base numbers for 2016, 2017 and 2018 shown above, for both sales and numbers of books, we used the online CAGR calculator to determine the compounded annual growth rate (CAGR) for both the number of children's books sold and the sales revenue for children's books.
  • From $298,500,000 sales in 2016 to $445,220,000 sales in 2018, the CAGR is 22.13%
  • From 19.9 million books in 2016 to 21,276 million in 2018, the CAGR is 4.07%
  • The spreadsheet showing the numbers used can be reviewed here.
Sources
Sources

From Part 05
Quotes
  • "Toys"R"Us (Canada) Ltd. announces the completion of the acquisition of its business by Fairfax Financial Holdings Limited."
  • "Toys R Us Canada is now a proudly Canadian-owned and operated business employing more than 4,000 Canadians and Canada’s only exclusive coast to coast business with over 80 locations dedicated to kids and babies across Canada. "
Quotes
  • "In 2018, in the Canadian English-language print trade market, we tracked sales for 867,000 unique ISBNs, which amounted to 54 million books sold at a value of $1.1 billion."
  • "Juvenile and YA books accounted for the majority of those sales, 39.4%, "
Quotes
  • "According to Patty Sullivan, director, retail and business development at Highlights, even though plans to license an exclusive puzzle line with Toys R Us fell through, the company’s book sales continued to grow last year."
From Part 07
Quotes
  • "Segment revenues for the fiscal year fell $7.2 million, or 2%, to $369.6 million, compared to $376.8 million in the prior year, as a result of sales of Harry Potter and the Cursed Child in the Canadian and export channels in the prior year period, partially offset by a strong list of new trade titles in Australia, Canada, the United Kingdom and Asia. "
  • "Although segment operating income in fiscal 2018 was down $2.0 million, or 10%, from the prior year, the segment finished stronger with operating income in the fourth quarter at $5.1 million, up $2.6 million or 104%, compared to the fourth quarter of fiscal 2017."
Quotes
  • "Juvenile (including Young Adult) was the best-selling genre in Canada in 2017, with a 39.9% share of total unit sales through traditional book retailers, representing 29.1% of the value of the total book market"
  • "A 2017 Scholastic Canada study found that 80% of children aged 6-17 will always want to read print books even though e-books are available, with this sentiment particularly felt among frequent and moderately frequent readers. In addition, of the 40% of children aged 6-17 who have read an e-book, 67% prefer print, 23% have no preference and only 10% prefer e-books.25"
Quotes
  • "The total volume of print units sold in 2018, as tracked by BNC SalesData, is 54.7 million at a value of $1.13 billion."
Quotes
  • "Print book sales in the Canadian trade market fell in 2017, dropping by 4% in units sold when compared to units sold by a comparable set of retailers in 2016. "
  • "In 2017, of all the books sold into the Canadian market (as reported to BNC SalesData), 40% were Juvenile (including Young Adult), 32% were Non-Fiction, and 26% were Fiction, which shows minor gains for Juvenile at the expense of the other two categories since 2016, when the breakdown was 38%, 33%, and 27%, respectively."
  • "The number of units sold overall was up in 2017 when compared with the number reported for 2016: 51.5 million units in 2017 compared to 50.6 million units is 2016. "
Quotes
  • "Total local currency revenues across the Company's foreign operations decreased by $18.6 million when compared to the prior fiscal year period. Local currency revenues from Canada decreased $6.7 million primarily driven by lower sales of Harry Potter themed titles when compared to the success of Harry Potter and the Cursed Child, Parts One and Two and Fantastic Beasts and Where to Find Them(TM): The Original Screenplay in the prior fiscal year period. "
  • "This was partially offset by increased sales in Canada's local and core titles as well as higher sales in Canada's book fair channel. "
  • "Local currency revenues from Australia and New Zealand decreased $3.2 million, primarily due to lower technology distribution revenues of $3.7 million as the Company exited this low margin business in Australia. "
Quotes
  • "Scholastic Canada Ltd is located in Markham, ON, Canada and is part of the Wholesale Sector Industry. Scholastic Canada Ltd has 613 total employees across all of its locations and generates 357.13 million in sales (USD). There are 257 companies in the Scholastic Canada Ltd corporate family. "
From Part 08
From Part 11
Quotes
  • "The age of majority in Canada is the age at which a person is considered by law to be an adult. A person younger than the age of majority is considered a "minor child." The age of majority in Canada is determined by each province and territory in Canada and varies between the ages of 18 and 19."
Quotes
  • "High school begins in grade seven, eight or nine and ends in grade twelve. Sometimes high school is sub-divided into junior high school (grades 7 – 9 or grades 8-10) and senior high school (grades 10 – 12 or grades 11 and 12)."
Quotes
  • "Overall, Canada’s publishing market is the 12th largest in the world and is valued at approximately $2.1 billion, according to the latest statistics released by BookMap. It’s a strong showing for a nation of 37 million people that, in effect, represents two wholly separate publishing industries: one in English and one in French."
Quotes
  • "The total volume of print units sold in 2018, as tracked by BNC SalesData, is 54.7 million at a value of $1.13 billion."
Quotes
  • "In 2018, 54 million books were sold in Canada, with a total combined retail value of $1.1 billion. Of those, 33.5% were non-fiction, 25.5% were fiction, and 39.4% were juvenile and young adult novels."
Quotes
  • "The largest customer category for book publishers' sales of own and exclusive agency titles in Canada was bookstores and other trade sales ($520.1 million), which includes major chain book stores and independent book stores such as university and college bookstores. This was followed by educational institutions ($188.4 million), such as primary and secondary schools, and wholesalers ($151.0 million)."
Quotes
  • "Juvenile (including YA) books saw the largest increase in units sold from 19.9 millions units in 2016 to 20.5 million units in 2017. Non-Fiction units sales also increased slightly from 16.3 million units in 2016 to 16.7 million units in 2017. Fiction was virtually unchanged with retailers reporting 13.4 million units sold in 2016 and 2017."