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Carving up the Toys "R" Us bonanza

Erica Pandey, author of @Work

Photo: Tom Pennington/Getty

Investors are talking about reviving the bankrupt Toys "R" Us, but its multibillion-dollar business is meanwhile being picked over by the big three — Amazon, Walmart and Target.

What's going on: Target and Walmart are adding floor space to accommodate more toys this holiday season, reports WSJ. And they are in a pitched toys battle with Amazon online, according to a new report from Gartner L2.


By the numbers: Toys "R" Us took 15% of the $27 billion U.S. toy market last year, selling $1.4 billion worth in just December 2017.

  • The battle to capture those sales is visible in online search terms — how buyers get to the site where they purchase stuff for their kids.
  • In 2017, Toys "R" Us owned the search results for 70% of toy-related keywords, such as "nerf guns" and "doll house." Babies "R" Us owned 81% of keywords in its arena, like "booster seat" and "diapers."

But this year, Amazon topped search results for 95% of toy terms and 88% of baby terms, per Gartner L2.

  • That is a huge triumph for Amazon, which set its sights on toys right after books and movies. Amazon's toy sales jumped 12% to $2.16 billion in 2017.
  • Target and Walmart products float to the top for 60-80% of search terms.

Go deeper

Hans Nichols, author of Sneak Peek
21 mins ago - Politics & Policy

Biden's latest executive order: Buy American

President Joe R. Biden speaks about the economy before signing executive orders in the State Dining Room at the White House on Friday, Jan 22, 2021 in Washington, DC. (Photo by Jabin Botsford/The Washington Post via Getty Images)

President Joe Biden will continue his flurry of executive orders on Monday, signing a new directive to require the federal government to “buy American” for products and services.

Why it matters: The executive action is yet another attempt by Biden to accomplish goals administratively without waiting for the backing of Congress. The new order echoes Biden's $400 billion campaign pledge to increase government purchases of American goods.

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Margaret Harding McGill, Ashley Gold
1 hour ago - Technology

Tech digs in for long domestic terror fight

Illustration: Sarah Grillo/Axios

With domestic extremist networks scrambling to regroup online, experts fear the next attack could come from a radicalized individual — much harder than coordinated mass events for law enforcement and platforms to detect or deter.

The big picture: Companies like Facebook and Twitter stepped up enforcement and their conversations with law enforcement ahead of Inauguration Day. But they'll be tested as the threat rises that impatient lone-wolf attackers will lash out.

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Marisa Fernandez
1 hour ago - Health

The pandemic could be worsening childhood obesity

Illustration: Aïda Amer/Axios

The 10-month long school closures and the coronavirus pandemic are expected to have a big impact on childhood obesity rates.

Why it matters: About one in five children are obese in the U.S. — an all-time high — with worsening obesity rates across income and racial and ethnic groups, data from the National Health and Nutrition Examination Survey show.

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