Walmart and Costco's Top Toy Supplier, Traverse Group, Launches Its Own Toy Brand, ToyVerse

Traverse Group was founded by retail veterans JD Hayes and Clint Lazenby. Its business spans sales strategy, retail brokerage, manufacturing, brand development, licensing, e-commerce, warehousing, fulfillment, logistics, and supply chain execution. Its clients include Walmart, Sam's Club, Target, and Costco Global, with annual GMV exceeding US$1 billion. Measured by dollar share, Traverse Group is already the world's largest toy supplier in the club channel. The core of this leadership, however, is not traditional toys. Rather, the company built its position by packaging Pokémon TCG into exclusive large-box offerings for Costco and Sam's Club — such as Elite Trainer Boxes (ETBs), Special Collections (SPCs), and holiday calendars. It profits from the channel operations sitting between IP owners, major retailers, and the supply chain — and that expertise is precisely what gives it the confidence to launch ToyVerse.

Note: The club channel refers to warehouse-style retail formats in which consumers must first pay for a membership in order to shop, represented by Costco, Sam's Club, and BJ's. It is characterized by large packs, multi-packs, and family-sized offerings, with high average order values and strong volume.

"We have the retail reach, the customer base, and the end-to-end supply chain," said JD Hayes. "Launching our own toy development company is a natural extension."

ToyVerse will develop both original concepts and licensed IP products. Its first wave spans five categories: Construction, Novelty, Plush, Craft, and Collectibles.

According to reports, ToyVerse's product strategy and global brand operations will be based at a new headquarters in Melbourne, Australia, led by industry veteran Claire Carroll. Her previous roles include Senior Vice President of Strategy at Toy Monster, Global Head of Girls' Toys at Moose Toys, and Global Head of Girls' Toys for Disney ANZ. On the U.S. side, the business will leverage Traverse's Bentonville retail and supply chain infrastructure to handle channel, manufacturing, and fulfillment.

Having evolved from helping other brands secure shelf space at Walmart, Sam's Club, and Costco to defining its own products, building its own assortment, and distributing it through its parent company's retail relationships, ToyVerse may not immediately disrupt toy giants such as Mattel and Hasbro. Still, this integrated channel–supply chain–brand player could become one of the most significant variables in the Western toy market over the next few years.