What the rise of Amazon means for Target and other toy sellers seeing flat sales
Target aims to open more stores: Report
FOX Business’ Jackie DeAngelis discusses Target’s strategic move to open stores in wealthier areas to be more competitive in the market.
After Target shares fell when the retailer missed its own expectations for holiday toy sales, industry experts say companies will have to rethink their strategies if they want to compete with Amazon's convenience and toy selection.
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"Target did seem to have a lot of potential. They seemed to be doing everything right in terms of toy marketing," Jackie Breyer, editorial director of The Toy Insider, told FOX Business. "Their numbers seemed like toy sales were flat, not actually down, following along with entire toy industry being down or flat a couple of percentage points."
TARGET'S HOLIDAY COMPARABLE SALES ROSE MARGINALLY, SHARES TANK
Right now, Amazon's online toy department poses a threat to every retailer going after the market share that Toys R Us lost after filing for bankruptcy.
Amazon showed its commitment to capturing the toy market by sending out a toy catalog with 80-plus glossy pages ahead of the holidays, Breyer said.
"Amazon continues to have record sales … and this does extend to the toy department," she said.
Amazon's next-day shipping is hard to beat when it comes to making shopping easy, finance expert and author Craig Kirsner told FOX Business.
"Target definitely is in a tough position with the ease and comfort of shopping on Amazon," Kirsner said. "At just the touch of a button, you can quickly view millions of available toys, shop for the best price, and usually have that item in your house the next day! … It seems the future will only continue in this direction."