Headlines

Toys "R" Us Turns to Private-Label Toys

Hopes private brands will boost profits

Published

9 years ago

July 10, 2015

Toys “R” Us (Wayne, N.J.) plans to use private brands to boost profits, reports Fortune. This comes as news that the company’s sales have recently been falling. The company hopes sales of these private-label toys will curb the decline, since they generate higher gross margins and allow the company a chance to differentiate itself from competitors.

This year, private brands generated 14 percent of the company’s first-quarter sales. Private brands that have already proven successful include its Journey Girls dolls, True Heroes action figures, and Imaginarium brand educational toys. In addition to expanding these already-existing lines, the company also plans to launch a new private-label baby-doll line this year.

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