Hasbro CEO: Co Not Funding Retailers' Additional Price Cuts
By Mary Ellen Lloyd, Of DOW JONES NEWSWIRES
Echoing comments by Mattel Corp. (MAT) last month, Hasbro Inc. (HAS) on
Thursday said retailers' early, aggressive discounts on holiday toys aren't
being funded by fresh price concessions from the toy maker.
"We are not funding any of the additional price cuts," Hasbro Chief Executive
Brian Goldner said during the company's investor conference, which was broadcast
on the Internet.
Earlier this week, Wal-Mart Stores Inc. (WMT) announced a new wave of "
rollbacks" on toy prices, on top of 100 toys for $10 it began offering last
month. Target Corp. (TGT), too, is promoting toy savings in a toy book mailed
out this week that features $5-off coupons on various Hasbro toys, such as a
popular Nerf gun and board games.
Like Mattel, Hasbro said that it sets up incentive programs with retailers at
the beginning of every year, providing support for agreed-on plans to feature
certain toys in advertisements and promotions. Chief Operating Officer David
Hargreaves said some retailers opt for smaller profits on toys in order to get
shoppers into their stores, while other retailers go with other promotions. "
That is their choice," he said.
Mattel executives last month said that while some retailers are choosing to
use promotional dollars from the toy maker to compete on price, its overall
level of help for promotions is about the same as last year.
-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145; maryellen.lloyd@
dowjones.com
(END) Dow Jones Newswires
11-05-091527ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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