Amazon Targets Toy Market Following Toys R Us Closure
E-commerce leader Amazon adopts traditional retail tactics to capture the toy market share left vacant by the closure of Toys R Us.
Amazon.com Inc. (AMZN) is strategically entering the toy retail space once dominated by Toys R Us by adopting some of the classic marketing methods that the now-defunct toy retailer popularized.
According to Bloomberg, citing anonymous sources, Amazon plans to launch a holiday toy catalog that will be distributed to millions of U.S. households and made available at Whole Foods Market locations. This move towards a printed catalog is part of Amazon’s broader strategy to integrate proven retail approaches used by established competitors.
Toys R Us was famous for its iconic “Big Book” toy catalog, a tradition also maintained by major retailers like Target Corp. (TGT) and Walmart Inc. (WMT). These catalogs remain a favorite way for children to create holiday wishlists.
Amazon initially embraced this concept in 2007 by publishing an online list of popular holiday toys. Despite some sales stagnation, Amazon’s share of the U.S. toy market has grown, accounting for approximately one out of every six dollars spent on toys last year, according to One Click Retail. Earlier this year, the company even considered acquiring select Toys R Us locations. (See also: Why Amazon Could Acquire Toys R Us Stores.)
An Amazon spokesperson declined to comment on rumors about the upcoming toy catalog.
Retailers Seize Opportunities After Toys R Us Exit
Although Toys R Us shuttered all its U.S. stores following bankruptcy, the brand still generated significant revenue, with $6.5 billion in U.S. sales last year, based in Wayne, New Jersey. (See also: Why Toys 'R' Us Stock No Longer Exists.)
Now, other retailers are eager to capitalize on this market gap. Party City Holdco Inc. (PRTY) is launching 50 pop-up toy stores for the holiday season, while Target announced plans in May to expand its toy selection and host in-store events featuring major brands during the upcoming holidays.
If you have news tips for Investopedia reporters, please email us at tips@investopedia.com.
Discover engaging topics and analytical content in Company News as of 10-07-2018. The article titled " Amazon Targets Toy Market Following Toys R Us Closure " provides new insights and practical guidance in the Company News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Amazon Targets Toy Market Following Toys R Us Closure " helps you make smarter decisions within the Company News category. All topics on our website are unique and offer valuable content for our audience.