Retailers rush to fill the vacation hole left by Toys & # 039; R & # 039; Us
Retailers rush to fill the vacation hole left by Toys & # 039; R & # 039; Us
and other chains are reserving more space for toys in hundreds of stores. A chain that usually operates in the emerging Halloween stores is opening dozens of temporary stores in Toy City. Even
plans to distribute toy catalogs to buyers who visit their Whole Foods stores, according to toy manufacturers.
While other general retailers seek to increase their toy sales, no store can completely replace Toys "R" Us by providing a wide selection of toys and a reliable supply of hot products on the shelves in the days leading up to Christmas, they say. toy manufacturers and analysts.
The result at retailers will likely be a selection focused on the most popular items and the best-known brands, with supply decreasing over the past week, according to executives and industry analysts. And that's when shoppers come to buy toys, despite retailers' efforts to promote purchases before, offering discounts.
Toys "R" Us made $ 2 billion in sales during the last two months of 2017, including more than $ 1.4 billion in December alone, said one person familiar with the subject.
The toy supermarket could be stocked up late in the season because it could afford to take inventory without selling until next year. Large retailers in the mass market focus on selling items so they do not have extra stock.
"The other guys do not plan for the business to have an inventory by the end of the year," said Neil Friedman, former president of Toys "R" Us.
The dynamic played last year with "LOL Surprise! Big surprise! ", A giant ball filled with 50 smaller items, which was a bestseller. Toys "R" Us retained much of that inventory until December, selling the item for $ 10 more than the suggested retail price of $ 69.99 and adding more products closer to Christmas, said Isaac Larian, founder of MGA Entertainment Inc., which manufactures the product. Other retailers, he said, had already analyzed their allocation, with Walmart even selling it for $ 59.
To prepare for a holiday after Toys "R" Us,
Mattel
Inc.
I studied the data carefully, analyzing which closed locations might have had better sales of Barbie accessories or Hot Wheels tracks and reallocating that product to nearby retailers.
"This year, more than ever, it will be the game to get the right toys in the right stores in the right amounts at the right time," said Mattel Commercial Director Steve Totzke. "The companies that do it best, manufacturers and retailers, will win the season."
He said that some retailers also commit to carrying expensive items, like their $ 200 Barbie Dreamhouse, in stores after the holidays, instead of the previous years, when they will try to sell them before the end of the year.
Several toy makers say that Target has been the most aggressive in pursuing the dispersed Toys "R" Us business. Later this month, Target plans to add up to 500 square feet of retail toy retail in more than 500 of its stores, half of which are within 5 miles of a closed Toys "R" Us. It will borrow space from its CD, DVD and book sections to offer a wider selection of riding toys, outdoor play toys and other items.
Target's main trader, Mark Tritton, said the retailer made the final purchases with the manufacturers at the end of August. Your toy inventory is already higher than last year and will continue to increase in the coming weeks, with around 80% in "proven and true" items.
"We are making a big commitment," said Tritton. "There's going to be the same amount of traffic, but it's going to be in less places, we're crazy for not thinking it's an opportunity."
Teresa (left) and Anne Marie Forte (right) watch the toys at Toy City in Rockaway, N.J.
Walmart is also expanding its toy section, especially in stores near the former Toys "R" Us stores. In addition, Walmart plans to fill those stores with more toys throughout the season, said Anne Marie Kehoe, vice president of toys for the retailer. "The plan is to be in stock in the best items throughout Christmas," he said.
Several toy makers say that Amazon is planning a printed toy catalog that will be distributed at its Whole Foods stores. An Amazon spokeswoman declined to comment.
Other retailers looking for toys are
Kohl's
Corp.
, who is now selling lego sets;
J.C. Penney
Co.
, which plans to distribute a catalog of toys; and FAO Schwarz, which is resurfacing with a new flagship store in New York City. Even the investors who control Toys "R" Us. in bankrupt say plan to reactivate the brand and reopen stores, but that is unlikely to happen in time for this holiday season.
The ghost of Toys "R" Us occupies a preponderant place in the attempt of Party City Corp. to pursue the toy business. Inside a former Toys "R" Us location in Rockaway, N.J., Party City is combining its typical Halloween pop-up store, Halloween City, with a new concept, Toy City. Shortly after October 31, the locker rooms will give way to a larger toy section.
The goal in this and other 54 Toy City planned locations is to take the most popular toys and exhaust them when the time comes to pack in early January, said Party City President Ryan Vero.
"We want the winners of the season," said Vero inside the store where the previous "R" of the previous tenant is still visible. "As a pop-up window, our goal is not to take the product out of the store."
An inflatable clown on display at a Toy City store in Rockaway, N.J.
Write to Paul Ziobro in Paul.Ziobro@wsj.com
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