Play-Doh Lands U.S. Manufacturing Partner
Cartamundi, a leading global game manufacturer, and Hasbro, Inc., have agreed to start manufacturing certain Play-Doh products in its East Longmeadow, Mass. Cartamundi factory for distribution in North America.
Cartamundi and Hasbro already work closely together on the manufacturing of more than a dozen Hasbro brands, including Monopoly, Candy Land, Risk, Clue, Operation, and Game of Life. Thirty million Hasbro games are produced in the United States every year by the employees based in East Longmeadow.
The continuing growth of these brands has already resulted in the recruitment of 30 additional employees in Cartamundi’s East Longmeadow facility. By the time the Play-Doh production line is operational, Cartamundi plans to hire an additional 20 employees. Combined with temporary staff, this will bring the total number of East Longmeadow employees to 480, reflecting 13.5 percent growth since Cartamundi acquired the factory in 2015.
“We regularly review our global sourcing strategy and make adjustments to optimize the execution of our brands,” says Brian Goldner, chairman and CEO, Hasbro. “We do not own any of our manufacturing but source product from a global network of vendor partners. This model allows us to make adjustments as opportunities arise. While each regional production situation is a bit different, we are able to produce Play-Doh for almost the same cost globally.”
Target Invests $7 Billion to Adapt to Evolving Guest Preferences
At a financial community meeting earlier this week, Target announced its plans to invest more than $7 billion in capital over the next three years, and about $1 billion in annual operating profits beginning in 2017, to grow sales faster, gain market share, and adapt to guests’ rapidly changing preferences.
Later this year, Target will streamline its digital experience for guests by combining Cartwheel, its savings app, with its flagship Target app.
Over the next three years, Target will re-imagine more than 600 locations. Store backrooms will double as hyperlocal distribution centers, which will get customers their orders faster and make operating costs more effective. By 2019, all Target stores will have this capability.
This June, Target will also roll out new technology that allows team members to search inventory, take payment from a mobile point-of-sale system, and arrange delivery all from the sales floor. It’ll be in all stores by the end of this year.
Target plans to open 30 small format stores in 2017, doubling its presence in dense urban markets and on college campuses. These stores will serve as neighborhood hubs for guests to pick up online orders. They will also help reach customers in areas that were previously inaccessible to Target, and connect with college students at a time when they’re developing brand preferences. By 2019, the retail giant hopes to operate more than 130 small format stores nationwide.