High online traffic converts to sales for Lego

Lego has reported a 14 per cent increase sales during the first half of this year, as traffic to its website more than doubled to 100 million.

Significant investments in the Danish toy maker's e-commerce operations last year appear to be paying off, as despite the company having to close all 616 stores during the pandemic, the rise in online visitors mitigated a drop in sales.

Revenues were up seven per cent to £1.87 billion, while operating profit rose 11 per cent to £470 million.

The discrepancy between sales and revenue was primarily down to Lego being forced to close production of its goods in China and Mexico temporarily due to the Coronavirus, and instead using its existing inventory to meet demand.

Lego reported a sales rise of over 10 per cent in its biggest markets across western Europe, Asia Pacific, the Americas and China - despite its temporary store closures.

The company now plans to open 120 new shops this year - at least 80 of which will be in China.

Chief executive Niels Christiansen commented: “Our strong portfolio appealed to builders of all ages and our recently upgraded e-commerce platform and agile global supply chain allowed us to fulfil online demand.

“We saw a very positive development during the lockdown when families began playing and building Lego sets together," he continued, adding: “We’ve seen momentum continue into the second half of the year even after people started going back to work and to school - so the result is not just a reflection of two months when everyone was sitting at home.”

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