Amazon ‘R’ Us?
The Hustle reported that Amazon has started producing its own toys under its AmazonBasics private label, stepping into the giant hole Toys ‘R’ Us left in the US toy market. Private-labeling, Amazon’s next step on its march to ultimate e-commerce efficiency, sent shivers down the spines of toymakers from Mattel to the North Pole. But what would a future without toy stores look like? We all know how the story starts: Amazon targets an industry, undercuts existing sellers until they fold, and adds the leftovers into its marketplace (RIP Borders, Tower Records, Circuit City, Sears...). After the news of Amazon’s plans surfaced, Mattel shares dropped more than 3% and Hasbro shares dropped more than 1%.