Read Daphne Howard, Retail Dive article, J.C. Penney pins holiday hopes on Lego partnership – including Jim Fosina, CEO Fosina Marketing Group’s commentary.
- With the importance of toy sales at the holidays, this tie-up is imperative for J.C. Penney and smart for Lego, according to Jim Fosina, CEO of Fosina Marketing Group. “This is a necessary move for J.C. Penney as Amazon and even Walmart continue to gain market share as in store traffic decreases,” he told Retail Dive in an email. “It would be great if they could have gotten Lego in store before December. This is likewise smart and necessary on the part of Lego, as Lego itself has been downsizing.”
- Like Amazon, Penney is taking advantage of the Toys R Us financial crisis by expanding its assortment, he also said. “Toys are still going to be bought at the holidays (and all year long) no matter what, but moving in on the retail toy consolidation is smart,” he said.
- Penney’s larger online assortment could even help it regain market share lost to Amazon, Fosina said. “This year will be a year to watch channel conflict between retailer, retailer’s online presence and Amazon, as all will be fighting to sell big brands like Lego,” he said. “This should be reassuring for Lego as their product still dominates and commands market demand from decades of innovation.”
- Even more effective would be a Penney-exclusive Lego box, he said. “Lego has the perfect continual series of products in its verticals and genre, and J.C. Penney has the ability to communicate directly with its customers. Put these two together and regaining market share from Amazon becomes a reality.”