Toys R Us' bankruptcy caused a 7% surge in sales for the toy industry during the first half of 2018 as parents stocked up, then sales fell 2% as manufacturers experienced their first Christmas without the company. Now, the industry is expected to make a comeback.
While dolls have been performing on par with the overall toy industry, Frozen 2's release at the end of the year, as well as the success from the two largest brands — L.O.L. Surprise! and Barbie — could cause a spike in sales.
"L.O.L. Surprise is killing it in the category," Lennett said. "Once those are fully stocked this year, we're going to see great things from L.O.L. Surprise, and of course Barbie is celebrating her 60th anniversary." Older children are spending more time on electronic devices, which means less time with toys, but Lennett doesn't think that will hurt doll sales.
"They are still playing with toys and I always say in order to play with the toy, you have to buy the toy," she said. "Maybe you used to spend two hours playing with the Barbie doll and now you're spending an hour and 45 minutes — you still have to buy the Barbie doll.". When the company liquidated its business, its lenders took over its intellectual property, including the Toys R Us, Babies R Us and Geoffrey brand names and are operating them under the name Tru Kids.
The first signs of its strategy in action were announced last week as Tru Kids struck a partnership with Candytopia
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