Private equity, Apple apps and Amazon share blame for Toys ‘R’ Us bankruptcy

Tonya Garcia at MarketWatch – her article around Toys’R’Us bankruptcy including Jim Fosina commentary.

  • With its traditional retail channels threatened, Jim Fosina, chief executive of Fosina Marketing Group, suggests toy manufacturers like Mattel Inc. MAT, +1.08%   and Hasbro Inc. HAS, +1.63%   follow the lead of companies like Nike Inc. NKE, +0.37%  and turn to direct-to-consumer channels.
  • “Can the toy manufacturers reach consumers directly before margins are cut so deep that it’s going to be problematic for them?” Fosina asks. “They used to be able to maintain customer relationships through retail. They have lost as retail has lost its footing with consumers’ new buying patterns and desires.”
  • If Hasbro and Mattel, which have strong recognition through their names and the names of their brands, could successfully sell their product through direct-to-consumer methods, Fosina says, “they might have some of the strongest opportunities to excel.”

 

You can read the full article here: Private equity, Apple apps and Amazon share blame for Toys ‘R’ Us bankruptcy