>> 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.
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.
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.
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.
>> 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.