Thursday 15 March 2018

Lego Not Clicking With Customers

Lego's latest set of annual numbers showed its first drop-off in profits and revenues for 13 years this week. It said it had produced too many bricks, and had to sell off excess stock at a discount. Every year it forecasts how much Lego it thinks it will need to manage its production, and last year its forecast wasn't on the money. A Lego spokeswoman said it had "too much" stock in warehouses and shops. "There wasn't enough room to get 2017 toys into the stores, and the toy trade is driven by newness," she added. Lego Group chief executive Niels Christiansen said there was "no quick fix" and it would take the firm "some time" to grow long-term. Also  the Danish toymaker said they would be making bricks with plastic sourced from sugarcane. The pieces will be included in Lego's box sets from this year onwards. The move is part of the Danish company's pledge to use sustainable materials in its products and packaging by 2030. The toys will be made with a polyethylene produced with ethanol made from sugarcane.