About this Deal
|Thereâ€™s a feeding frenzy comingâ€¦but it may not be as filling as some retailers think.|
With Toys 'R' Us gone, major retailers are looking to gain additional business from the toy industry. Amazon, Walmart, Target, and Buy Buy Baby are leading the predictions for the retailers that are going to take over the spot Toys 'R' Us left behind.
Amazon could gain 40% of Toys 'R' Us' former business. They've already indicated that they're going to publish a toy holiday wish book, which was something that used to be a signature marketing effort for Toys 'R' Us.
Walmart could take up to 30%, and has already created a new nursery portal on their website.
Target CEO Brian Cornell has publicly stated that he plans to aggressively pursue the toy industry. One prediction has said the retailer could gain $600 million in new business, which is low compared to the predictions for Amazon and Walmart.
Meanwhile, Buy Buy Baby - which is a division of Bed Bath & Beyond - is the closest thing to Toys 'R' Us' Babies 'R' Us unit. It could become the new destination for parents looking for nursery furniture and such products.
While this all sounds promising, a good portion of that $11 billion in sales from Toys 'R' Us could simply disappear. Kids still play with Legos and Hot Wheels and Barbies, but now there are three-year-olds with tablets, and that's changing the way parents shop for their kids.
Finally, the birth rate in this country is as low as it's been in 50 years; any potential bump from Millennials finally starting families is still years away. There just aren't as many kids out there to consume all these toy products that retailers are trying to sell them.
While the previously mentioned retailers will gain a portion of the revenue from Toys 'R' Us, some of it isn't going to go anywhere. A lot of those sale numbers will simply vanish into the thin air of retail.
Read more about it at Forbes.