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Sabtu, 31 Maret 2018

This is the fallout from Toys “R” Us’ closing

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This is the fallout from Toys "R" Us' closing

Toys "R" Us is set to close or sell all of its US stores, as a lackluster holiday season, inhospitable retail environment, and billions in debt forced it to go beyond its original plans to close only 182 of its US stores.

Despite all of its problems, Toys "R" Us still had $11.5 billion in sales in 2017, and its exit from the market leaves toy makers in a lurch. Hasbro and Mattel, two of the US' biggest toy manufacturers, are owed $59 million and $135 million by Toys "R" Us respectively, according to The Motley Fool.

More importantly, Hasbro is estimated to have made 9% of its revenue in 2017 from Toys "R" Us, and Mattel brought in 11% itself. Without Toys "R" Us, the two companies and plenty of other manufacturers will need to find new avenues to supplement their sales.

And other retailers are well positioned to pick up the sales lost from Toys "R" Us' closing.

Business Insider Intelligence analyst Daniel Keyes has the full story.

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