Closure of Puppenkönig store The threat of online toy trade

BONN/MÜNSTER · Online trade is a threat to toy shops: some traditional stores have already given up, like the Puppenkönig in Bonn which will close at the end of this year. The Mukk toy store in Münster wants to escape this fate - with its sheer size and special products.

You could always rely on it being there. Just in time for Christmas, the large model railway was set up in one of the shop windows of the Puppenkönig toy shop in Bonn. For 93 years, children and adults pressed their noses up against the glass to see it as they crowded in front of the shop window.

It was only during the Second World War that the train remained in its depot for four years. And that's where it will probably be forever. For the train has now reached the end of the line. After 106 years of trade, the Puppenkönig is closing at the end of the year - for economic reasons. "Internet trade is a huge burden to us toy traders," says owner Alfred Westenhöfer (65).

In many other cities in North Rhine-Westphalia (NRW) there are hardly any owner-managed toy shops of this size left. For a long time, the Feldhaus store on the Schildergasse in Cologne was a place of children’s dreams; in Düsseldorf, the Lütgenau store has also disappeared.

But the toy store chains are also under pressure: at the end of January, the Dutch chain "Intertoys" will close its 23 branches with a focus on NRW, while Toys'R'us filed for insolvency last year. "I assume that many more will have to give up in the coming years," says Westenhöfer.

This is something that Jürgen Budke absolutely wants to avoid with his toy shop Mukk in Münster. You have to take off your shoes to get to his paradise: the slide leading down into the basement of the Mukk store can only be used in socks. Downstairs there are all kinds of games to try out, including a Carrera train.

"A grandmother and her seven-year-old grandson were here last," says managing director Jürgen Budke. "The boy played with Carrera for the first time and was totally enchanted." It is highly likely that the boy will now want a train and will be on at his parents or grandmother about it. Whether it will then be bought online or at Mukk is not certain.

Retail trade suffers due to online trade

In Mukk, Münster's unusual children's department store, you can find almost everything that exists for children - textiles, fashion, prams, toys - on 3000 square metres in the best downtown location. It is considered to be one of the most beautiful toy shops in Germany. This store is also affected by online trade. "But we don't want to die in beauty," says Budke, who manages the business - which employs 100 staff - together with his wife and a managing director.

Budke is counting on a collaboration - in April last year, he joined forces with Teddy Toys Kinderwelt in Bielefeld to form a new company Mukk Kinderwelt GmbH. "The advantage is that together we have better purchasing," says Budke. Joint strategies for online and stationary trade are also planned. And a particularly important point: " I don't have a successor to take over the business, so Mukk will be continued if I retire".

It is not just the toy stores who are undermined by Amazon - the entire retail trade is suffering, Jürgen Budke stresses. And this is due to unfair taxation. "If I want to sell products as a trader at Amazon, I pay Amazon 16 percent. Where does Amazon tax this income?" Mukk also relies on online trading, but with its own Mukk online store which offers shipping and Click & Collect services (i.e. order and pick up in the shop). "That's the future, and that's how stationary retailers will survive."

Jürgen Budke sees himself well positioned for the future. "We make amazing shop windows and we don't stand still, we are constantly building up our business and have 60,000 items." His whole team is passionate about it. But is all this enough to survive? "I really don't know, because I don't have a crystal ball."

For him, the composition of his range is essential. In the toy market, ten manufacturers account for 70 percent of sales, including giants like Lego, Ravensburger and Playmobil. "Although we don't live from them, you need them," says the 56-year-old. These ten only account for 20 percent of his turnover.

Stationary trade is a blessing for small manufacturers

The greatest part of the business comes from the lesser-known brands. For example, "Done by Deer". "Three years ago, we added these high-quality stuffed animals to our range." Since then, sales of pastel-coloured animals manufactured in Europe have increased tenfold. For smaller companies such as this, the Mukk and the stationary trade as a platform are a blessing. "How else do they want to make this known online?" Budke asks.

The small manufacturers simply don't have the money. "This is a win-win situation for both sides. But he is not interested in big brands, even though Barbie and Co. are naturally on his shelves. But the zeitgeist is changing fast, trends come and go. "We have to keep up the pace as a business." Otherwise, as for many smaller shops, the only thing that remains is specialisation: in balloons, kites, wooden toys or model railways. Lego's bestsellers can also be found in large supermarkets and drugstores.

The Christmas trade went well for Mukk. "We had ten percent more customers in the store, which shows our concept is right." There was also growth in 2018. "We are a dinosaur of the industry," says Budke. The fact that the dinosaurs were unable to escape their fate doesn't bother him. "Some dinosaurs have adapted to the conditions and survived. I think we will, too."

Westenhöfer, who spent his whole life at Puppenkönig in Bonn, thought like this for a long time. He hasn't completely ruled out setting up another model railway at the end before the closure. "We will see," he says. When the train makes its last round, the people of Bonn will certainly gather again in front of the shop window to watch. (Original text: Christian Schwerdtfeger und Martina Stöcker, Translation: Caroline Kusch)

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