FIRST AIRED: March 17, 2018

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Transcript

00:00:01
>> Toys R Us is closing its doors, and that's sending shockwaves through the toy industry. For leading toymakers like Mattel and Hasbro, Toys R Us accounts for 10% of annual sales apiece. That's causing investors to feel anything but playful. Shares of Mattel are in a major slump, down 46% over the past year, though Hasbro is down much less.
00:00:24
But it's not just the big players that are left scrambling to find a place for their goods while protecting profits at the same time. Joe Shammy is President of Delta Children Products.>> So the product that I've already sold to Toys R Us, and much of it they're not paying for is theirs.
00:00:41
They will be selling it at close out prices, discount prices until the store closes up. It will create a situation, a temporary situation where prices, everyone is gonna have to be competitive. Everyone will start dropping prices to meet those other prices.>> And now, instead of a whole store to themselves, all the toy and children furniture makers will be cramped into a few aisles at the so-called big box stores like Walmart and Target, and rely even more on Amazon.
00:01:10
Like many others, Shamee expects many small vendors to go bankrupt. He's devoting more time to his online strategy.>> We're gonna look at creating better packaged products that fit the needs of a .com retailer, and we're gonna continue. We just have to work on that a little faster than we were working on it before.
00:01:29
>> In the meantime, there's hope Toys R Us will be snapped up and modernized. The name that comes up often as a possible savior, ironically, Amazon.