Goodbye TRU?

[MapleMegatron]

Originally Posted by theoneyouknowleast

Another Article on why TRU wont die

https://www.thespec.com/news-story/7...-t-let-it-die/

I feel its more like the CANT die, for the sake of the toy industry. Which is different. Because, ss protoman spoke on the podcast, the death of toysrus would be the begining of the death of the toy industry, and Hasbro and Mattel. If there is no market for low priced action figures, then all that will be left is the high end stuff, sold online.

[Yonoid]

Originally Posted by MapleMegatron

I feel its more like the CANT die, for the sake of the toy industry. Which is different. Because, ss protoman spoke on the podcast, the death of toysrus would be the begining of the death of the toy industry, and Hasbro and Mattel. If there is no market for low priced action figures, then all that will be left is the high end stuff, sold online.

Pretty interesting article. so does it mean we will get more hasbro winter/summer savings coupons?

[Tekkamanraiden]

Originally Posted by Yonoid

Pretty interesting article. so does it mean we will get more hasbro winter/summer savings coupons?

Could be, personally I found to worked better than trying to find what I wanted when it was on sale.

[Omegatron]

Originally Posted by theoneyouknowleast

Another Article on why TRU wont die

https://www.thespec.com/news-story/7...-t-let-it-die/

That's a really interesting article, the best I've read so far and, if true, it answers a lot of questions.

Why has Toys R Us been putting prices up steadily? Partially because they need to drive up operating profits so they at least look like they are ahead of the debt.

Why has distribution been so patchy? Not directly addressed but reading between the lines, perhaps because they haven't been paying their suppliers, so maybe they get inventory that's lying around rather than the latest thing.

Why don't Canadian stores feel like they are trouble? Because we've been bailing out the US for years and are basically profitable.

Are private equity firms the epitome of evil? Yes, yes they are.

On the plus side it looks like Toys R Us will get support while it restructures so that makes me a lot more positive.

One question though. If Toys R Us are 9% of Hasbro's sales and lets be generous and say Wal-Mart is 20%, then where is the other 70%? If its already from on-line sales through the likes of Amazon, then Uh Oh.

[justprime]

Exactly.70%.....what did we do before toys are us...if there is a vaccume ..
if they go out of business some one (s) will fill that gap ..
I can remember when they were not in exsistance and toys were everywhere from sears ,consumers,to specislty shops if there is a dollar to be made ..someone will fill the gap...maybe we'll get better distribution and more even product flow if they close out excess stores in states...since we're so profitable ...imho

[Tekkamanraiden]

Originally Posted by Omegatron

One question though. If Toys R Us are 9% of Hasbro's sales and lets be generous and say Wal-Mart is 20%, then where is the other 70%? If its already from on-line sales through the likes of Amazon, then Uh Oh.

Probably not that high for amazon (probably around the same as TRU), probably not that high for Walmart either (probably less).

Here are my thoughts;

First is Hasbro don't just make toys, they also have an entertainment and gaming division.

Second it would be a bit foolish for Hasbro (or any company) to rely on just one retailer. In the US their are a lot of retailers to sell to (Target, Kmart, Meijer etc)

Third, Hasbro is a international company selling to most of the world. I've been noting a lot of sighting from TFW2005 from South America and Europe that I wasn't seeing a few years back.

Originally Posted by justprime

Exactly.70%.....what did we do before toys are us...if there is a vaccume ..
if they go out of business some one (s) will fill that gap ..
I can remember when they were not in exsistance and toys were everywhere from sears ,consumers,to specislty shops if there is a dollar to be made ..someone will fill the gap...maybe we'll get better distribution and more even product flow if they close out excess stores in states...since we're so profitable ...imho

And yet we are down to 2 major retailers that sell toys year round.

10 years ago we had 5 (Zellers, Walmart, Loblaw, Sears, Toys R Us).

20 years ago we still had K-mart, Consumers Distributing, Eatons and one more I can't remember the name of.

If TRU goes, maybe Marshals/Winner/Home Sence would step up. Maybe Giant Tiger would give it a go.

But considering how much money TRU makes from Babies R Us and how limited Walmarts sellection is (at least near me) I have to conclude much like electronics, their is not a lot of profit in toys.

[Chigimus]

Originally Posted by MapleMegatron

If there is no market for low priced action figures, then all that will be left is the high end stuff, sold online.

....but that's exactly what the market has been progressing towards. Collectors our age are what continues to propel the success of 3rd party manufacturers, and outside of transformers, adult collectors interests have grown to fuel the continued success of non-mainstream higher end companies like Sideshow, Premium Collectibles, Kotobukiya, Bandai Tamashii, etc.

I see it first hand with the children in my own family. My nephew who is now 14 has never gotten interested into any toy franchise as a kid. Not Lego, Transformers, TMNT, Pokemon, or any other product in toy format. He loves Pokemon games and World of Warcraft and still plays them today. His sister who is a few years younger: same thing, never latched onto a toyline, but loves Roblox. I hear similar stories about the kids my wife knows through her social circle as well. Kids these days are more interested with digital toys instead of physical toys, and this seem significantly more likely after infancy passes.

[Scrapper6]

Originally Posted by Tekkamanraiden

Probably not that high for amazon (probably around the same as TRU), probably not that high for Walmart either (probably less).

Here are my thoughts;

First is Hasbro don't just make toys, they also have an entertainment and gaming division.

Second it would be a bit foolish for Hasbro (or any company) to rely on just one retailer. In the US their are a lot of retailers to sell to (Target, Kmart, Meijer etc)

Third, Hasbro is a international company selling to most of the world. I've been noting a lot of sighting from TFW2005 from South America and Europe that I wasn't seeing a few years back.



And yet we are down to 2 major retailers that sell toys year round.

10 years ago we had 5 (Zellers, Walmart, Loblaw, Sears, Toys R Us).

20 years ago we still had K-mart, Consumers Distributing, Eatons and one more I can't remember the name of.

Woolco?

[Tekkamanraiden]

Originally Posted by Scrapper6

Woolco?

No it was a small chain that sold just toys than went out of business in the mid 90's.

edit: It was Toys and Wheels.

[CobraCommander]

Originally Posted by Tekkamanraiden

No it was a small chain that sold just toys than went out of business in the mid 90's.

edit: It was Toys and Wheels.

Toy City?