It’s all thanks to Hogwarts Express, methinks. Sales of model trains are picking up steam again, thanks to deals linking them to the `Harry Potter’ and `The Polar Express’ movies. According to Reuters, the trend has brought a welcome boost to model train makers Lionel.The company, one of the big names in the business in the 1950s, had to serve an older but smaller hobby market after children’s interests moved away from train-related purchases. The Reuters articles notes that entertainer Neil Young, who is passionate about trains, bought a fifth of the company in 1995.
It was a good move indeed. Now, the company is bringing trains back to young people, and sales are up 40 per cent in the last two years. Lionel signed deals to bring out `Harry Potter’ and `The Polar Express’ trains, and filled shelves at department stores such as Macy's and Target, instead of just hobby shops. ``We're a resurgent brand based on nostalgic appeal,’’ said CEO Jerry Calabrese.
Last Christmas, the company advertised toy trains as the ultimate gift by setting up displays at Macy's Santaland and Grand Central Terminal in New York. The sales pitch had great results, as 40 per cent of Lionel's sales of $70 million in 2006 came during the Christmas season.
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