The U.S. toy industry looks set for a flurry of mergers and acquisitions between smaller toy makers in the aftermath of the Toys ‘R’ Us bankruptcy, as they seek more scope and negotiating power with big box retailers Target and Walmart, Reuters reported. Smaller toy companies that traditionally relied on Toys ‘R’ Us as a launch platform to sell and promote products say it is difficult to develop relationships with mass retailers, which now have the country’s biggest toy departments. They say that retailers are increasingly picky about allocating display space, preferring billion dollar well known brands like Mattel’s Barbie and Hot Wheels and Hasbro’s Marvel Superhero action figures. The total value of deals in the U.S. toy industry has soared to $962.7 million since Toys ‘R’ Us filed for bankruptcy on Sept. 19 last year, compared to $85.4 million in the same period a year ago, according to Thomson Reuters data.
