Target to Power Toys"R"Us’ New Website
Target announced today that it’s partnering with the parent company of the Toys"R"Us brand, TRU Kids, to help it relaunch ToysRUs.com. The deal will allow Toys"R"Us to once again have an online presence, post bankruptcy, as it simultaneously begins to open Toys"R"Us stores in the U.S. again. And it could also be a huge boost to Target’s already-strong toy business ahead of the holiday season. Starting Tuesday, shoppers who visit ToysRUs.com will be redirected to Target.com to complete their purchases once they select “buy.” The companies declined to comment on how much of each sale goes to Target vs TRU Kids.
Total Retail's Take: Target has been aggressively investing in its toy business in an effort to gain market share in the category, prompted ironically by Toys"R"Us going out of business last year. This partnership with TRU Kids furthers those efforts on growing toy sales at Target. TRU Kids CEO Richard Barry said Target was chosen to power the brand's website because of its already impressive toy business, its strong supply chain and clear “understanding of the [toy] category.” However, there is one potential fly in the ointment with this deal. Target has had well-publicized issues with its technology systems in recent months, including its systems (including its website) going down three times in the past three months. How will Target's system hold up with the additional traffic from ToysRUs.com being funneled to it? As we enter the busy Q4 holiday shopping season, particularly in the toy category, one would hope that Target's tech issues are a thing of the past.