Lego saw consumer sales jump 21 per cent last year as its digital investment strategy fuelled its best growth in half a decade.
The world’s largest toymaker reported a revenue rise of 13 per cent to DKK 43.7 billion (£4.95 billion) throughout 2020, driving a 19 per cent jump in operating profits to DKK 12.9 billion (£1.48 billion).
While its supply chains were impacted by the pandemic through much of the year, closing stores and temporarily closing its manufacturing sites in Mexico and China, Lego managed to achieve a net profit increase of DKK 9.9 billion (£1.4 billion).
Lego attributed this growth to its increasing investment in digital operations, largely spearheaded by chief executive Niels Christiansen who was appointed in 2017.
Visits to Lego’s website doubled throughout 2020, and the retailer said it plans to further increase digital investment in 2021 and expand its digital and technology teams.
“We have a solid digital foundation, but must move faster,” Christiansen said.
“The past year has shown the importance of having an agile, responsive business built on strong digital foundations.
“We will further develop our capabilities in this area so we are well positioned to meet the evolving needs of our retail partners and consumers now, and in the long term.”
Consumer sales reportedly grew in all Lego’s market groups, while its market share expanded in all 12 of its largest countries.
Alongside its focus on ecommerce expansion, Lego opened 134 new retail stores in 2020 and plans to open a further 120 this year, including 80 in China.
“People are looking for unique and memorable physical brand experiences, so we will continue to invest to expand our global retail footprint, as well as elevate our instore shopping experiences,” Christiansen said.
“This approach strengthens our brand, creating a positive impact across all channels. We will also further build our e-commerce capabilities to support online shopping on our own and our partners’ platforms.”