Vacuum for Physical Toys
According to reports, Amazon.com's toy sales rose 30% in Q3'18 last year with toys for adults and grown-up games being the bulk of the sales.
So, there has to be a way out right?
Unfortunately, competing with Amazon on convenience and pricing doesn't seem like a viable option for former Toys R Us executives as they try to stage a comeback under a new name.
It seems that the vacuum that was left in the wake of their bankruptcy filings have motivated many of the large sharks to dive into the $11billion opportunity.
Further up the supply chain...
Mattel (toy maker of brands like Barbie and Hot Wheels) is facing a lawsuit from investors who claim that the company failed to disclose declining sales .
Whilst the rest of us speculate the merits of the lawsuit, this could perhaps be the first of many unforeseen events triggered by the collapse of Toys R Us. With such a valuable sales channel gone, could the future of companies like Mattel and Hasbro look more like the digitally native D2C brand of today?