- Target (NYSE:TGT) seems like a natural to benefit from a smaller base of Toys "R" Us stores in the U.S., with 93% of the toy stores scheduled to be closed within 15 miles of a Target location. Also, Target CEO Brian Cornell told analysts last November that the company was "playing to win" in toys.
- Yet, despite the seeming windfall for Target, there's the Amazon (NASDAQ:AMZN) problem and the cost of marketing the retailer as a top toy destination.
- "We do not believe Target should invest more in selling national brand toys, and Target’s toys business is not core to our investment thesis," says Jack Leslie from Target stakeholder Miller/Howard Investments Portfolio. Stonebridge Capital Advisor's Steven Roorda agrees, noting that the toy category is not a growth business.
- Target's willingness to go all-in with toys could have some bearing on Hasbro (NASDAQ:HAS) and Mattel (NASDAQ:MAT) as well.
- Now read: Target: Sizing Up A Potential Amazon Takeover
Original article