This month, Hasbro
It's not that hopping on the e-commerce bandwagon with HasbroToyShop.com is a bad idea in itself. Providing a virtual hub for parents to pick up classic Milton Bradley and Parker Brothers board games as well as the latest VideoNow, Weebles, G.I. Joe, and My Little Pony playthings is a novel idea. If Hasbro, a Motley Fool Hidden Gems newsletter service recommendation, can take in more profits by cutting out the retail distribution channel while establishing a connection with the end user -- perhaps in perpetuity -- it will have made a sweet move.
The problem here lies in the possibility of a backlash from retail stores that are affected by the consumer-direct model. Wal-Mart
While this isn't the kind of quandary that found Disney
Earlier this week, Hasbro posted a small loss for its first quarter. Granted, this is a seasonal company that makes the bulk of its profits during the final two quarters. After Hasbro's rather lackluster holiday season, you can't blame the company for trying to make a difference on its own, but it may come at the price of alienating the very retailers the company still needs. Let's hope the shopping mall Santa's cheeks are red because he's cheery -- not because he's angry.
Should the Darth Tater company go Han Solo in retail distribution?
- Hasbro's poor showing earlier this week wasn't much of a concern in itself.
- However, it did come on the heels of a disappointing holiday quarter.
- Hasbro has been previously singled out in both Motley Fool Stock Advisor and Hidden Gems.
Longtime Fool contributor Rick Munarriz got whupped by his 6-year-old son in Monopoly Jr. earlier this week. He does own shares in Disney.The Fool has a disclosure policy. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.