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Hobby & Toy Stores Expect Steady Growth
Hobby and toy stores have endured a shifting retail landscape so far in 2025. Revenue for hobby and toy stores is expected to swell at an annual growth rate of 4.6% to $64.0 billion through the end of the year, including growth of 2.2% in 2025 alone, according to the 2025 Hobby and Toys Market Research Report from IBISWorld. The popularity of e-commerce has significantly altered how consumers shop, with many preferring the convenience, variety and easy access offered by online platforms. In response to e-commerce competition, traditional retailers have diversified their sales channels and strengthened their digital presence. The popularity of licensed toys and merchandise, inspired by popular film, television and gaming franchises, has greatly impacted the industry, leading to robust sales and collaborations between toy companies and entertainment studios. Large discount retailers and mass merchandisers, aided by their national scale and direct connections with manufacturers, have become an increasing threat to hobby and toy stores. Still, hobby and toy stores that successfully established an online presence and carry popular toys and hobby supplies have remained competitive and profitable. The Hobby & Toys market comprises three segments: traditional toys and games, musical instruments and sports equipment. Leading companies include Michaels Companies, Inc., GameStop Corp. and Hobby Lobby Stores, Inc. The industry reports revenues of $64 billion and employs 510,000 people in nearly 70,000 U.S. businesses. New Tracks Awards Railroad Modeling Scholarships Over the past three years, the New Tracks Modeling Mentoring Scholarship (NTMMS) has awarded $15,000 in scholarships to youth who represent the future of the model railroad hobby, according to Bob Davidson, chairman of the NTM scholarship program. The program awarded four recipients $2,000 scholarships for the 2025-2026 academic year. Brock Durham is a senior at The Citadel in Charleston, South Carolina, with a major in Civil Engineering. He plans to graduate in May 2026. Brock previously received a scholarship for the 2024-2025 academic year. Dean Deis is a sophomore at Moorpark College in California and plans to transfer to California State University, Fullerton, to pursue a degree in Geography. An accomplished modeler, he volunteers with the La Mesa Model Railroad Club, serving as assistant operations superintendent and chief train dispatcher. Mateo Kuo of Lynnwood, Washington, is a freshman at Montana Technological University, majoring in Mechanical Engineering. He began modeling through 4-H and has an interest in rail preservation. Aiden Kinney is a freshman at the University of Colorado, where he will major in Aerospace Engineering. He started model railroading with his grandfather and is now skilled in scenic detailing, with a strong interest in the history of narrow-gauge railroads in Colorado. | 
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Walt’s HobbyTown Ends 50-Year Run
After half a century, the Throne family has decided to close the doors of Walt’s HobbyTown in Lakeland, New York this fall. Inventory was marked down for 50% clearance sales, and fixtures, shelving, and other items were for sale as well. Bruce Throne cited a slowdown in sales for deciding to close the store. Bruce’s parents, Walter and Janet, opened the first store in 1975. Over the years it changed locations and names to become Walt’s HobbyTown in 2014. Walt, who was instrumental in the formation of the National Retail Hobby Stores Association, died in 2023 at age 78. His son Bruce has been running the store since Walt retired 20 years ago. |
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Smoke Stack Hobby Shop Closes Doors For Retirement After nearly a dozen years at the helm of one of Fairfield County’s most beloved hobby destinations, Patti and Don, owners of The Smoke Stack Hobby Shop, have announced their retirement. The news marks the end of an era for the Lancaster, Ohio community and generations of modelers who found a second home inside the shop’s welcoming walls. On April 1, the couple would have celebrated 12 years since taking over the business from its founder, Dale Kennedy, who opened the shop in 1977. True to Dale’s legacy, Patti and Don expanded the store’s reach and reputation, transforming a modest 2,500-square-foot space into an 8,000-square-foot hub complete with indoor rock crawling tracks, operating model train layouts, and a warm community spirit. “Our customers are some of the best and most loyal any shop owner could ask for,” the couple said in a farewell message. “Many of you have become like family. It’s been an honor to be part of your lives and the broader Lancaster community.” |
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Hornby Restructuring US Operations
Industry sources report Hornby USA is selling bulk inventory assets to distributors and retailers from its warehouse in Lakewood, Washington.
The venerable British hobby company has been battling financial woes over the past few years. Earlier this year, the company delisted its stock from the Alternative Investment Market (AIM) and re-registered as a private limited company. In early 2025, Hornby reported that it was “continuing to drive down inventory levels” that had built up in previous years as part of an overall efficiency strategy that also included divesting the Oxford diecast subsidiary, employee layoffs, and relocating its logistics operations in the U.K.
The Lakewood facility handles the importing and distribution of Hornby’s various brands across the U.S. These brands include Hornby model trains, Scalextric slot cars, Airfix plastic models, Corgi Model Club diecast models, and Humbrol paints and supplies.
Hornby did not respond to a request for comment.
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