When Toys R Us filed for bankruptcy many people knew this will have a profound effect on the toy industry. That negative effect is already happening.
Several of the major popular toys are having lower sales as a result of the news. This is especially bad timing since we’re just about to head into the holiday shopping spree.
Mattel and Hasbro both announced lower sales for the third-quarter of the year. Barbie, Hot Wheels, My Little pony and etc. all have suffered from the bankruptcy filing of Toys R Us, BusinessMirror reports.
Even LEGO announced that its sales have gone down for the first time in 13 years. The company even has to cut 1400 jobs as a result.
Of course, not everything can or should be blamed on Toys R Us. Many kids these days prefer video games and electronics to classic toys. It’s also a bad turnover after the last couple of years were among the best ever for the toy industry.
Mattel says half of the 22% decline of the revenue for the three months ending Sept. 30 is due to the Toys R Us bankruptcy. Still, Babrie’s sales fell 7% globally while Hot Wheels scored a 6% global decline.
There’s still hope that the toy industry will bounce back during the holiday season. Several hit movies are about to debut like Justice League and the latest Star Wars. Also, FAO Schwarz is returning including in Bon-Ton, Carson’s and other big stores. New toys like the Hatchimals can grab kids’ attention. So, there’s still a lot of fight left in the toy industry.
