Toys R Us is back from the dead and Target was the CPR certified person to do that. Target announced recently that will be helping Toys R Us come back to life by using the Toys R Us brand name and fulfilling orders for the once giant in the industry.
Target is making a smart play, especially around holiday szn to sell Toys R Us products and using the brand name. Now Toys R Us is not owned by Target, but this does help the parent company Tru Brands get their engines running. In a move that I thought Amazon would more likely take, Target is getting more products, using a great name, and continually winning when it comes to the competitors mainly being Amazon and WalMart.
If you want to win the Toy Wars you gotta get the right products backing you. When Toys R Us filed for bankruptcy a year or two ago it was a big hit to the industry but a giant opportunity for other companies to swoop in and eat up the consumer dollars. Target has been making those kind of moves recently and has been profiting and pushing their stock price higher and higher. There is still a long road ahead of them but taking these steps will help build their moat against the competitors while it helps bring more customers online AND in the store. This paired with their latest Disney offerings will help propel them above the noise of the typical shopping szn.
A big question I have is, who’s next? There are plenty of other industries that could buy up brand names and use technology to bring the brand back to life. Restaurants, Oil & Gas, Fashion, Airlines, Automobiles, Websites, the list goes on and on. If Targets newest roll out proves to be successful, I don’t see why any other industry could not replicate this process and benefit from it. There is plenty of cash to be made through brands that are already dead. It’s a resurgence in the market, let’s see how it pans out.
Anyway, that’s my take on it. Until next time.
-GS
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