Target Corp. investors are urging the company to halt its plans to invest more in toys amid the collapse of Toys R Us, Reuters reported Feb. 22.
Investors reportedly are worried that the company's perceived advantage in the toy market after Toys R Us collapse could consume capital, which is "desperately needed" in its retail battle with Amazon.com Inc., adding that the toy business is not core to its investment strategy.
Analysts predict that Target would be among the retailers to benefit from the Toys R Us bankruptcy, with 93% of the latter's stores earmarked for closure only 15 minutes away from at least one Target store, the report said.
The Minneapolis-based retailer, which added 1,400 new toys to its catalog in 2017, reportedly outlined its plans to invest $2 billion on promotions, stores and technology to better compete with other retailers, according to Reuters.
Instead of foraying into the toy category, several Target investors want the company to focus on exclusive private-label brands, expand the online business and open more stores near urban campuses, the report added.