The 1970's and 1980's saw new types of toys being designed as a result of changes in popular culture, changing ideas about ethics and new technology, said the Museum. Iconic toys emerged in this era as they had in the 60's, when Barbie and Sindy exploded onto the scene. Action Man, Star Wars, Cabbage Patch dolls, Rubik's cube, He-man and Transformers were among the most popular toys of these decades. The Toy Retailers Association meanwhile, remembers that in 1992 Thunderbird's Tracy Island had people queuing all night outside toyshops for the hottest product of the year. This in the same decade that saw Power Rangers, POGS, Teletubbies, Beanie Babies and Corinthian Football Figures make huge profits despite the nation battling through what had been a tough recession.

Mintel research published in November last year, found the UK market for toys and games to be large and robust. It was estimated to be worth nearly 2.2 billion in 2007, which is up by 22% in real terms on 2003. New product introductions had been a vital component in growth, it said. In addition, and very probably as a result of growing pressures on household income, traditional games and toys with proven appeal were in high demand throughout 2008. Rubik's Cube, Scrabble and Monopoly were all among the predicted best sellers for Christmas.

"The toys and games market is highly fragmented with the largest companies surrounded by hundreds of others, often specialists in sectors such as wooden toys, puzzles, crafts, educational toys and games, plush and models," observed Mintel's report. Overall, the strongest performing sectors are construction toys, games and puzzles, vehicles and action figures, while arts and crafts and outdoor games are holding steady, it found. "Again, perceived good value may well play a part here."

Nursery retailers could find their niche in this sector by offering something different; a range of more unusual toys would no doubt complement the availability of licensed products found in larger retailers or specialist toyshops. As ever, the independent retailer's strength is its difference - sourcing innovative product is key to success. Despite the tough economic climate, parents will continue to spend on their children. Toys that promote education and offer value in terms of providing long periods of play may well prove the answer to paid for activities outside of the home when money is tight and bolster the market, suggests Nursery Industry.