Last year, Toys R Us was already hobbled by financial woes that interfered with its merchandising and marketing abilities at the holidays, but this year, with the chain gone, there has been a mad scramble for its market share, representing some $11.5 billion in annual sales.
Some of that, about 20%, is going to “simply evaporate,” according to Juli Lennett, senior vice president, industry adviser for The NPD group’s U.S. toys division. Still, the holiday season is when half the toys in the U.S. are sold, and most (83%) of those taking advantage of the Toys R Us liquidation sales earlier this year gave those toys away before the season, Lennett found.
