LEGO Group achieves strong growth boosted by new stores in China

The LEGO Group recently reported earnings for the full year of 2021 which show that revenue for the year grew 27 percent versus 2020 to DKK 55.3 billion and consumer sales grew 22 percent over the same period, outpacing the toy industry and driving market share growth globally and in largest markets.

During the year, the company opened 165 new LEGO branded brick and mortar stores, with more than 90 in China and according to the LEGO Group, its significant investments to expand, innovate and transform its digital retail channels and brick and mortar stores paid off in 2021. 

Sales across its own and partners’ digital retail channels grew strong double digits, indicating the shift to online sales from 2020 continued, the group said. 

2021 also saw the introduction of a new retail store platform that is designed to create immersive, memorable brand experiences for shoppers. It will be introduced to more stores in 2022.

Speaking on the matter, CEO of LEGO Group Niels B. Christiansen said: “I am grateful for everything the LEGO Group was able to achieve in 2021. Our passionate and committed team of more than 24,000 colleagues showed tremendous dedication and resilience to keep the world playing. Meanwhile, our strong financial performance allows us to further accelerate strategic investments to help us reach more children in the long term.”

Amongst other things, LEGO Group also said that its five factories in three continents positioned the company well to navigate through shifting demand in its largest markets.

In 2021, the LEGO Group announced its plans to further expand its network of factories with a new USD 1 billion factory in Vietnam. Located near Ho Chi Minh City, the site will be the company’s first operationally carbon neutral factory, constructed to support long-term growth in the Asia-Pacific region.

Additionally, the company is expanding its capacity of existing manufacturing sites significantly over the next five years to meet immediate and longer-term demand in line with growth expectations.

Read LEGO Group’s full report here

 

About Gregers Møller

Editor-in-Chief • ScandAsia Publishing Co., Ltd. • Bangkok, Thailand

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