The Wall Street Journal is reporting that some of the toy industry's largest players, including Hasbro and Mattel, are supporting Toys R Us this holiday season with exclusive merchandise and TV advertising directing consumers to the troubled toy giant.
The chain reportedly approached as many as thirty of its suppliers asking for the deals; 21 exclusive products will get their own TV ads, with the manufacturers paying for 17 of the campaigns, and Toys R Us paying for the other four. Last year, no manufacturers paid for ads promoting exclusive products; Toys R Us paid for two, according to the article.
The chain expects about 25% of its products to be exclusive this year, up from 20% last year.
The toy companies involved are stepping up to the plate because they're concerned about the loss of distribution that a collapse of the country's largest toy chain would mean. Toys R Us carries about 9,000 SKUs, according to the article, which is the industry's largest selection. Discount chains such as Wal-Mart, now the country's largest toy retailer, carry smaller selections of only the top-selling products.
Toys R Us is also competing on price more aggressively this year (see 'Holiday Toy Price War'); last year Wal-Mart cut prices early and often and established the lowest-price position (see 'Wal-Mart Applying Toy Category Kill Shot').
