On Feb. 20, toy giant Hasbro announced its new “Playing to Win” plan, a growth strategy that aims to expand its reach and increase profitability after losses for the company in recent years.
The plan outlines the company’s strategies through 2027 but offers little clarity on months-long discussions regarding the relocation of its headquarters out of Rhode Island.
With this new plan in place, there is concern that Hasbro is “outgrowing their current headquarters,” said Grace Voll, the director of communications for the City of Pawtucket. But the toy enterprise is a “staple” of the Rhode Island community, so “we don’t want to lose that,” Voll said.
Hasbro’s Pawtucket headquarters employs 900 people, 600 of whom are Rhode Island residents, Voll told The Herald.
“If you grew up in Rhode Island, you know somebody who knows somebody who works at Hasbro,” she added.
The City of Pawtucket has been in negotiations with Hasbro in an effort to retain the company’s RI headquarters, according to Voll.
Pawtucket Mayor Donald Grebien’s office has offered the toy company tax incentives for a new headquarters in Pawtucket, Voll said. Tax Increment Financing, for example, could reduce real estate taxes for the development of their new headquarters.
Pawtucket also offered Hasbro the former Apex building, a “massive spot of land” next to the Tidewater Stadium, Voll said. If Hasbro chooses to station its headquarters in the building, the city would assist them through the development process, she added.
Efforts to keep the toy company in Rhode Island are not limited to Pawtucket officials. Gov. Dan McKee met with Hasbro CEO Chris Cocks after the company first announced the potential relocation, The Herald previously reported.
400 Congress St. in Boston’s Seaport District has emerged as a leading candidate, according to the Boston Business Journal. This building, leased by Foundation Medicine, is currently undergoing a partial sublease, which has created an opportunity for Hasbro to move in.
But Pawtucket “would love to keep them in Rhode Island,” Voll said.
Whether in Rhode Island or Massachuesetts, Hasbro’s new growth plan targets a 50% increase in reach, aiming to grow “over 500 million kids, families, and fans today to over 750 million.” The strategy also aims to achieve $1 billion in cost savings by 2027.
According to a press release, the company has focused its efforts on “high profit, high growth areas like digital games” and well-known brands like Dungeons & Dragons and Monopoly. The company is also known for producing toys for franchises like Star Wars, Monopoly and My Little Pony.
The company also plans to expand into blockbuster movies, cruise ships, video games and more.
With this growth, the current Pawtucket HQ is “not technologically fitting (Hasbro’s) needs,” Voll said. “But there are other opportunities for them in Pawtucket.”
