The Toys "R" US bankruptcy has left toy manufacturers and retailers scrambling to get just the right of mix inventory out ahead of the holiday season.
"This year more than ever, getting the right toys in the right stores at the right quantities at the right time is going to be the game," notes Mattel (NASDAQ:MAT) Chief Commercial Officer Steve Totzke.
Walmart (NYSE:WMT) and Target (NYSE:TGT) are setting aside more floor space for toys this holiday season, while Amazon (NASDAQ:AMZN) plans to distribute toy catalogs out of Whole Foods stores in an effort to reach consumers. Chains such as Kohl's (NYSE:KSS), J.C. Penney (NYSE:JCP), Toy City and Party City (NYSE:PRTY) are also looking to fill the toy void strategically.
The risk for large retail chains in scrapping for toy sales is overshooting with inventory and being forced to sell after the holidays at lower prices.
While the retail attention to toys is a positive for Mattel and Hasbro (NASDAQ:HAS), uncertainty over if toys will be pulled into the tariff battle with China still hangs over the toy companies.
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