Global Toy News Insight
Faire’s inaugural Independent Retail Report challenges the idea that retail growth and trend discovery are primarily driven by major metropolitan markets and large chains. Its data shows independent retail growing fastest in smaller cities and towns, while physical and multichannel retailers are outperforming online-only businesses in wholesale purchasing. For toy companies, that reinforces the importance of specialty toy stores, gift shops and other independents as a meaningful distribution channel—not simply a secondary outlet after mass retail. These stores can offer brands something increasingly valuable: local relationships, hands-on discovery and carefully curated assortments that give unfamiliar products a chance to be noticed.
Perhaps the most interesting takeaway for the toy industry is the role independents are playing as early trend detectors. Faire found searches for “squishy” toys surged on its platform six weeks before the trend reached mainstream media, with similar early movement around mahjong and Dubai chocolate. The retailers Faire calls “Scouts”—those willing to place first orders with new and unproven brands—also tend to be established, higher-volume physical retailers rather than new boutiques. For manufacturers and inventors, that suggests independent retail can function as both a sales channel and an early proving ground: getting the right product into influential specialty stores may help identify, validate and accelerate a trend before the broader market catches up.
Faire Unveils First-of-Its-Kind Data on the State of Independent Retail
SAN FRANCISCO–(BUSINESS WIRE)– July 22, 2026 – Today, Faire released its inaugural Independent Retail Report, a data-driven look at how independent retailers are buying and adapting in a shifting economy. Drawing on a global panel of independent retailers, the Report finds that physical stores are outgrowing online-only ones, small towns are outpacing major cities, and independent retailers are identifying consumer trends and stocking their shelves with new products before they become mainstream. The full report can be found here.
Independent retail accounts for more than half of all retail locations across every U.S. state and 65% of U.K. retail, yet has long lacked the kind of comprehensive data available for chain retail. With a decade of wholesale relationships now flowing through its platform, Faire intends to use this dataset to regularly surface how independent retailers are adapting their sourcing strategies and shifts in consumer behavior.
“Inventory decisions are independent retailers’ biggest cost, but they’re also the expression of their biggest advantage: taste,” said Jennifer Burke, Chief Revenue Officer at Faire. “This report shows that even amid economic headwinds, independent retailers are proving remarkably resilient. Instead of retreating into pure cost optimization, these businesses strike a savvy balance and continue to offer their customers the best-of-the-best.”
Independent retail’s growth is concentrated outside major metros
While thousands of big-box stores closed over the past year, Faire’s data shows independent retail is growing fastest in small cities and towns rather than major metropolitan hubs, where you might otherwise expect retailers to be more vulnerable to economic pressures. In the U.S., this growth is following where Americans are moving, into Sun Belt cities including Augusta, Georgia and Norman, Oklahoma. The shift is also being powered by Gen Z’s preference for in-person shopping and a broader rise in small-town travel to smaller, historic destinations like Sturgeon Bay, Wisconsin and Williamsburg, Virginia.
The same pattern held internationally: market towns Hereford and Lyme Regis topped all 58 U.K. cities measured, with 90% of their retailers growing versus 58% in London. Regional hubs also outpaced major metros in Canada, Australia, and France.
Tariffs reshaped sourcing, but didn’t dampen the appetite for differentiated products
Tariffs pushed U.S. retailers further toward domestic brands, but it didn’t kill the appetite for standout imports. Italian leather accessories (+571%), Finnish bat and bee houses (+423%), Irish artisanal chocolates (+233%), and Moroccan woven bags (+214%) all grew despite the pressure.
Canadian retailers, meanwhile, pulled back sharply from U.S. brands when tariffs hit in 2025, but are now showing tentative signs of a rebound in 2026, with U.S. share of spend ticking up 1.7 points year-over-year on a same-store basis. Canadian retailers predominantly increased their imports of U.S. brands with deep awareness and loyalty, suggesting the rebound is starting cautiously, with retailers leaning on sure bets.
Viral trends are reaching the shelves of independent retailers before they hit the mainstream market
Independent retailers move fast: Faire’s data shows searches for “squishy” toys spiking on the platform six weeks before mainstream media caught on, a pattern also seen with Mahjong sets and Dubai chocolate.
The Report also introduces “Scouts,” retailers who consistently place first-ever orders with new and unproven brands. Scouts aren’t who you’d expect: They are not the newest kid on the block, but established, high-volume retailers. These local landmarks are leading product discovery, proof that the next brand your neighborhood falls in love with probably won’t come from a mall, but from the shop down the street poised to take a chance on it first.
To read the full report, visit: faire.com/news/faire-independent-retail-report-july-22-2026
About Faire
Faire is an online wholesale platform used by independent retailers to source unique products from around the corner and around the world. Faire’s data-driven approach levels the playing field for independent retailers by offering net 60 payment terms and free returns on opening orders, eliminating inventory risk and providing access to capital. For brands, the platform provides powerful sales, marketing, and analytics tools, so sellers can simplify their wholesale business and focus on making great products. To date, Faire has facilitated over 10M new connections between brands and retailers on the platform. For more information, visit www.faire.com.
