I suspect it's the train business that is struggling. It's now more a hobby for the fairly wealthy middle-aged rather than for kids, and none of it is cheap. Added to that, they use a different scale from the rest of Europe resulting in them having virtually no export business to Europe as far as I can see.
Model shops and high street toy shops stock some Airfix in Germany and Austria, but although model railways are still big business here, it is all HO or N gauge. It seems to be all Märklin for trains, Kibri for static vehicles models and Faller for buildings.
I also almost never see Scalextric - Carrera dominates the market. Corgi is also completely absent from shops here.