Prior to the first holiday season after the bankruptcy of Toys R Us, companies including Amazon, Target, and Party City wanted to take a bigger share of the toy market, and Wal-Mart was no exception. It is now adding more to stores and online. Toy sales.
Recently, Wal-Mart said it will expand its toy categories in all physical stores during the holiday season and will increase sales of toys by more than 30% on the Wal-Mart website. In some places, the space dedicated to selling toys will be even larger, and Wal-Mart will transfer the space allocated to seasonal goods (such as back-to-school items) to the toy category. Wal-Mart’s goal is that if customers want to buy a toy, the first place to shop is Wal-Mart.
Earlier this year, hundreds of Toys R Us stores were closed, giving other retailers the opportunity to enter and occupy the market share of toy products. According to market research firm NPD Group, toy sales last year increased 1% from 2016 to 20.7 billion. NPD said sales in the first half of 2018 increased by 7% to $7.9 billion.
Many companies, including Wal-Mart, have developed a strategy to compete for the toy market share, and even those companies that don’t usually sell toys have begun to covet this “fat.”
The party city is not a traditional toy retailer, but it will also open 50 toy city stores during the holiday season. The company also said it plans to permanently add more toy products to its Party City area. Several other companies, such as Kohl’s, Five Below and J.C. Penney, have also stated that they plan to sell more toys this year.
A research report said that Amazon will be the biggest beneficiary after the bankruptcy of Toys R Us, because the e-commerce giant accounted for more than a dozen percentage points of 2017 toy sales in the United States.
This week Amazon has entered the toy market and released a list of TOP toys, which is 10 days ahead of last year. It is expected that Amazon will begin to distribute the catalogue of holiday toys at the Whole Foods grocery store and send the catalogue to Prime members by mail to expand the variety of toys.
It wouldn’t be surprising if Amazon sent a catalog to non-Prime members and promised to offer a free 60-day Prime trial between November and December. After all, e-commerce giants want to further increase their share of the toy market during this holiday season.
In order to compete with Amazon, Wal-Mart has taken measures to increase sales of toy products in order to compete for a bigger toy market share. The company also said it plans to hold more than 2,000 “retail entertainment” events in its stores this year to promote new toys. On September 8, Wal-Mart will also host National Game Day events in more than 1,500 stores.
It seems that after the bankruptcy of Toys R Us, in order to compete for the market share of toy sales, all companies are eager to try. Who can make the most profit? The answer can only be announced after the holiday season this year.