As Toys R Us Closes U S Shops Toy Brands Are Getting Nervous

Companies like Target have been developing this kind of relationship with toy manufacturers for years, so this shouldn’t be too much of a change. However, retailers like Kohl’s and JCPenney, who historically are not big spenders in toy distribution, will be stepping into the ring to try and arrange new distribution deals with frantic toy manufacturers. The same LA Times report suggests that the vacuum left by Toys ‘R’ Us might cause some toy manufacturers to merge together. It’s long been speculated that Mattel, Pawtucket, and Hasbro might be working towards a game-changing merger, and the disappearance of Toys ‘R’ Us might be just enough to make that happen. Even if the three companies decided not to merge, their legacy brands will keep them competitive. Hasbro, for example, handles Star Wars toys, and the demand for those will not be going away. For their part, Mattel made almost a billion dollars last year, just off of Barbie dolls.