Competition in the marketplace has intensified, as Toys R Us resurfaces; the terrain has become more challenging than before.

The toy retail market is gearing up for a fierce competition during the upcoming fourth quarter, as major players scramble to fill the void left by the demise of Toys R Us.

Target, one of the key contenders, has formed strategic partnerships to bolster its position. The retail giant has partnered with the reincarnated Toys R Us to power the brand's relaunched website, sending all product sales to Target's website via a "buy" button. Additionally, Target has partnered with Disney to create 25 Disney toy shops within Target stores, with an additional 40 scheduled to open by October next year.

Amazon, another heavyweight in the industry, is managing the actual sales and fulfillment of orders by anyone coming to Toys R Us' site to buy something. The tech giant controls nearly 75% of all Hasbro and Mattel transactions online, according to Jumpshot, and lists more than 630 toys as exclusive to its site as of Oct. 22.

Walmart, not to be outdone, has increased its exclusive toy products, added marketing bells and whistles, and expanded its toy assortment in stores and online. The retail giant now offers more than 2,500 new and exclusive toys this year, almost double the number from last year. Interestingly, Walmart's toy list for this year includes 42% of toys made by companies outside of the major players like Hasbro and Mattel.

The reincarnated Toys R Us, through a joint venture, has opened two stores this year, which are low-risk and sell space to toymakers. These stores serve as a stepping stone towards a larger comeback.

The toy industry sales are starting to "normalize" after the disappearance of Toys R Us and are showing they can grow again. This year's holiday sales season marks the second without the big box version of Toys R Us, but retailers are optimistic about the potential for growth.

The main actors trying to fill the market space left by Toys R Us in the toy retail sector include a mix of smaller startups, micro-brands, and established companies focusing on e-commerce and specialized logistics. These players are leveraging network cooperation and innovative strategies to capture market share.

According to Profitero, Walmart was the top destination for former Toys R Us shoppers. However, the fourth quarter is likely to be dominated by the country's largest retail players, with Target, Amazon, and Walmart expected to engage in a heated battle for market supremacy.

Jaysen Gillespie, head of analytics and data science for Criteo, predicts that the retail market for toys will become less fluid over time, suggesting a more stable and predictable market landscape in the future.

As we move towards the holiday season, it remains to be seen who will emerge as the dominant player in the toy retail market. One thing is certain - the competition will be fierce, and consumers can expect a wide variety of toys and exciting promotions from the major retailers.