Retailers are scrambling to fill the void left behind by Toys R Us by convincing shoppers their stores are the go-to place to find toys This particular holiday season.
The biggest winners so far appear to be Walmart in addition to Target, according to a study by Gordon Haskett Research Advisors in partnership with data provider Alpha Hat. They surveyed more than 50,000 people who had shopped Toys R Us in July of last year in addition to then shopped another retailer after Toys R Us’ stores were all closed, in July 2018, noting where those people chose to go otherwise.
Walmart has been the biggest winner so far in addition to captured 26 percent of lost Toys R Us traffic, Gordon Haskett said in a research note. Target got 14 percent, while dollar stores including Dollar General in addition to Dollar Tree captured 10 percent, in addition to Costco 8 percent.
Together, those three retailers in addition to the category “dollar stores” captured roughly 58 percent of traffic which used to funnel to Toys R Us stores. To different retail analysts, This particular should offer a not bad picture of where consumers are planning to head This particular holiday season.
“Recent commentary via retailers suggest which companies will be shifting spend to raise their respective toy offerings in addition to/or augment the presentation of products in light of over $1.0 billion of share up for grabs post the Toys R’ Us closings earlier This particular summer,” Gordon Haskett analyst Chuck Grom said.
While Costco isn’t typically known for having a large toy selection, the study said the company saw the biggest increase — even more than Walmart — year-over-year in traffic via shoppers who used to go to Toys R Us nevertheless at This particular point go to the wholesaler. the item had 18 percent more visits This particular past July than the item did a year prior via former Toys R Us shoppers. Costco could talk more about the holidays when the item reports earnings on Oct. 4.
Walmart has already said the item will have 30 percent more toys in stores later This particular year. Target said the item will roll out more than 2,500 brand-new in addition to exclusive toys within the coming months.
Kohl’s has said the item will bring in brand-new brands FAO Schwartz in addition to Lego ahead of the holidays, while J.C. Penney has also promised to bulk up its toy assortment, particularly items for babies, trying to capture market share left behind via Babies R Us.