Several toy manufacturers reportedly are helping beleaguered Toys ‘R’ Us with exclusive toys and dedicated advertising.
Mattel, Inc., Hasbro, Inc., Leap Frog Enterprises and Lego AG have all committed some of their holiday items to be sold only in TRU stores, reports The Wall Street Journal.
The move comes as TRU seeks a buyer for its 1,200 stores worldwide. The company announced in August that it would consider selling the toy business and spinning off Babies ‘R’ Us (Aug. 12 Xtra). Bids are expected to begin this month; that increases pressure to drive strong holiday sales.
TRU’s exclusive toys represent 25% of its inventory, up from 20% last year, per the Journal. They include K’Nex Industries’ Big Air Ball Tower construction set and Mattel’s Hokey-Pokey Elmo, a hot seller last year.
Twenty one exclusive toys get TV ad support, with 17 spots funded by manufacturers and four by Wayne, NJ-based TRU, the Journal reports. Manufacturers reportedly paid for no ad support last year.
TRU’s woes trace back to Wal-Mart Stores, which replaced TRU as the top toy-seller in 1999, primarily through price cuts. Wal-Mart now holds an estimated 25% market share; TRU’s share is estimated at 17%.
Meanwhile, TRU is donating $1 million worth of toys to the U.S. Marine Corps’ Toys for Tots Foundation. TRU stores also will collect cash donations from customers through Jan. 7.
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