Target Corp. plans to fill the Toys R Us void as the holiday season quickly approaches, according to CNBC.
All remaining Toys R Us and Babies R Us stores shut down earlier this summer after the New Jersey-based retailer declared bankruptcy, creating an opportunity for other retailers in the kids-merchandise space. Target was a clear beneficiary: Sales of baby clothing and shoes rose nearly 20 percent in the most recent quarter. Hardlines — a category that includes toys — saw high-single-digit comparable growth.
"We're picking up sales that would have gone to Babies R Us and Toys R Us. … We're certainly benefitting from new toy buyers, baby buyers that are coming to Target more frequently," said Target Chief Executive Officer Brian Cornell on a media call following its second-quarter earnings announcement, according to CNBC.
In July, the retail giant announced of introducing new, more “magical” Harry Potter assortment to attract more holiday shoppers this year. Harry Potter, a popular book series introduced in 1998, has been translated into films, toys and a theme park, all through popular demand. Harry Potter merchandise and toys can already be found on Amazon, Walmart and Barnes & Noble, but now Target is offering a whole new assortment of toys and merchandise not offered by any of these retailers.
“Our guests love Harry Potter—and with our incredible assortment and exclusives, Target’s the ultimate destination for all things Harry Potter,” says Mark Tritton, Executive Vice President and Chief Merchandising Officer of Target. “We’re constantly collaborating with the best partners in the business to create unique products that we know our guests will love. And now, for the first time, we’re teaming up with LEGO to give fans early access to seven must-have sets. It’s pure Harry Potter-inspired fun, and totally Target.”
According to CNBC, Cornell said Target is well-positioned to take market share in this category and is increasing inventory now to prepare for a surge that is already showing up in stores.
"We are investing in categories like toy and baby where we know we have this big opportunity ahead of us," Cornell said in an interview with CNBC. "We are going to make sure we are taking more than our fair share of that market share."
To read CNBC's full article, click here.