Betting on Hasbro

Posted by jim on October 19, 2008 under Economics | 2 Comments to Read

Sometimes in the toy business we actually make a good decision on what to bet on for the Christmas season.  Sometimes it’s a well informed, well researched choice of product that sells like crazy.  Other times it’s just a good guess or a hunch that pays off.  Of course, the flip side of this (that happens far too often) is the calculated risk that flops, or the educated guess that collects dust in the warehouse for two years.

As a speciality toy retailer, we have always believed in the importance of providing unique product that distinguishes us from “Big Box”.  So, much of our focus has often been on educational games, made in America product, small innovative manufacturers and award winning toys.  But, we have also always believed strongly in the consumer’s right of choice.  Relative to toys, customers often have brand preference, and rightfully so.  As a result, we have always tried to make sure we carried the brands that people wanted, especially at Christmas time, in addition to the rest of our sometimes eclectic offerings.

From the beginning, we chose to feature Hasbro toys prominently at Christmas time.  While Mattel is the largest toy manufacturer in the world with Hasbro the second, we have always felt more strongly about the brands and selection from Hasbro.  We have placed a couple of small orders with Mattel over the last couple of years but have not been enamored with their selection or with their customer service.  While we have had our issues with Hasbro, we have found their brands stronger, products more inventive and enjoyed the fact that many of their board games are still made in the USA.

In any event, it turns out that we are not alone.  While Mattel’s stock has plummetted this year along with the rest of Wall Street, Hasbro is one of less than 30 companies in the S&P 500 that has actually seen their stock rise in 2008.