Amazon.com is back in the toy retailing business, but this time with its own inventory and on its own terms.
In March, Amazon lost its multi-year merchandising and e-commerce agreement with Toys “R” Us Inc. after the New Jersey Superior Court ruled that Toys “R” Us could terminate the contract by June 30.
Now Amazon is rebuilding the toys section of its store and launching a new baby store. Amazon’s new toys category carries a wide variety of leading brands, including Fisher-Price, Hasbro, LeapFrog, Lego, Mattel, and VTech.
A new Amazon baby store also carries a large collection of products for outfitting children from birth to 2 years old, including blankets, nursery furniture and educational games. The baby store also features a new interactive registry.
Amazon says the new categories feature tens of thousands of products, including hard-to-find items from specialty retailers. “We've never been able to offer our customers this much selection,” said CEO Jeff Bezos. Following the loss of the Toys “R” Us arrangement, Amazon, No. 1 in the Internet Retailer Top 500 Guide to Retail Web Sites, needed to take aggressive measures to keep pace in the category. In a recent SEC filing, Amazon says the loss of the Toys “R” Us contract could negatively impact its operating profit by as much as $50 million for the year, including $25 million in the second quarter.
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