WHO'LL SAVE THE TOYS

[Son of Wobble]

The looming closure of Toys R Us means that 10-15 % of toys currently in manufacture will be lost for good.

Surely some are concerned for these endangered brands.


The question: Who'll save the toys? Is it YOU?

And as a related question: Do you have any Toys R Us memories to share? Is the toy emporium a factor, say, in your love for high-acreage Guitar Centers?

the details:




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Toys R Us could soon liquidate its U.S. operations and the result will leave a lasting impact on the toy industry, Jefferies analyst Stephanie Wissink wrote in a note to investors Friday.

While Toys R Us accounted for 15 to 20 percent of U.S. toy sales last year, not all of that will shift to other retailers when the retailer is gone. Instead, about 10 to 15 percent of this volume will fall through the cracks and be lost for good.

Wissink estimates between 85 and 90 percent of Toys R Us' volume in the second half of the year would be redistributed. Products will shift and be sold by e-commerce sites such as Invalid Link Removed, big-box stores such as Invalid Link Removed or Invalid Link Removed and drug and grocery stores. Other retailers such as Invalid Link Removed, Invalid Link Removed and Invalid Link Removed may clear more shelf space for toys.


"It's difficult to estimate, but based on third party consultancy surveys of consumer visits to TRU, roughly 10 to 15 percent of purchases are estimated to be incidental and may not transfer to other channels," Wissink wrote.

Sources told CNBC on Thursday that Invalid Link Removed, but that situation remains fluid. A terrible holiday season hurt the toy retailer's chances of recovery, and it has already begun liquidation sales ahead of planned store closures.

Toy companies such as Invalid Link Removed and Invalid Link Removed have already Invalid Link Removed for such an event. Representatives from Hasbro told CNBC during the New York Toy Fair in February that they are not dependent on one retailer and have explored multiple new channels to sell the company's toys.

While Amazon, Walmart and Target will pick up the slack for bigger toy companies, small toy brands could be in trouble.

Toys R Us' massive size allowed it to sell both name-brand toys and products from upstart toymakers. However, with its closure, the big-box retailers likely won't take in these brands because they are already pinched for shelf space in the toy section. This will make it even harder for small toy manufacturers to gain ground.

Wissink said she expects the fallout of Toys R Us' liquidation to cause a rise in the number of mergers and acquisitions of smaller toy makers. Hasbro and SpinMaster are likely the best-positioned toy companies to make these acquisitions and build out their portfolios, she said.

 

[Gorn]

The looming closure of Toys R Us means that 10-15 % of toys currently in manufacture will be lost for good.

How so?

 

[Son of Wobble]

How so?

"It's difficult to estimate, but based on third party consultancy surveys of consumer visits to TRU, roughly 10 to 15 percent of purchases are estimated to be incidental and may not transfer to other channels," Wissink wrote.

 

[Gorn]

"It's difficult to estimate, but based on third party consultancy surveys of consumer visits to TRU, roughly 10 to 15 percent of purchases are estimated to be incidental and may not transfer to other channels," Wissink wrote.

Yah but that's purchases, not manufacturing. Or are there items that were being manufactured exclusively for toys r us?

 

[BurnOut]

I have a vast Furby collection, so I should be able to get through this unscathed.

 

[Son of Wobble]

Yah but that's purchases, not manufacturing. Or are there items that were being manufactured exclusively for toys r us?

I knew we could find a way to argue about this!

 

[Gorn]

I knew we could find a way to argue about this!

Of course.

No but you might be right. I haven't been inside a toys are us in about 20 years, and I don't really know much about retail supply and sales and manufacturing.

 

[Alkali Ike]

I've only ever been in a Toys R Us once. It made me feel really creepy.

 

[BurnOut]

Where will I get instant gratification on my toy purchases, I can't sit on the front porch waiting for my newest My Little Pony to arrive, I need it now!

 

[Son of Wobble]

Of course.

No but you might be right. I haven't been inside a toys are us in about 20 years, and I don't really know much about retail supply and sales and manufacturing.

Nor me. My intent was simply to see how long the most benign thread I could offer to TB would take to become contentious.

You won the thread in post #2

 

[BurnOut]

Nor me. My intent was simply to see how long the most benign thread I could offer to TB would take to become contentious.

You won the thread in post #2

Winning!

 

[T_Bone_TL]

I expect your small toymakers will figure out selling online direct, or not.

I've been in one exactly once.

That's also typical "math is hard" Barbie reporting.

10-15% of 15-20% is 1.5-3% of US toy sales, not 10-15% of all toy sales.

 

[shadowtippy]

I have made less than 10 purchases from them, so it shouldn't bother me that they are closing.

 

[BurnOut]

I guess we's gonna have to get our toys at The Wal-Marts from here on in.

 

[BurnOut]

Toys R Us bloated prices and poor inconsistent quality control has brought this upon themselves. Their CEO has made some poor choices, and his nepotism choices for upper management isn't helping the company. Why should I buy toys from them when I can get a Chinese knockoff toy, that's just as nice, for a 1/5th of the price.

 

[ptg]

Toys R Us bloated prices and poor inconsistent quality control has brought this upon themselves. Their CEO has made some poor choices, and his nepotism choices for upper management isn't helping the company. Why should I buy toys from them when I can get a Chinese knockoff toy, that's just as nice, for a 1/5th of the price.

Because most very inexpensive items are made by people (and sometimes children) working in slave labor conditions.

 

[T_Bone_TL]

Because most very inexpensive items are made by people (and sometimes children) working in slave labor conditions.

So are a good many more expensive things that are made in the same appalling conditions and marked up more, unfortunately. While I have not shopped there in over 30 years (and then just the once) I'd be surprised if 90% plus of what's sold there didn't come from a place where such conditions are entirely likely, and obscure from the end purchaser. Just like WM.

 

[BurnOut]

Alright this is escalating beautifully.
Perhaps you can score a Thread Shutdown Personnel Best today Wobble.

 

[Funky Ghost]

King Moonracer, of course.

Damn, I wanted to link the Mark and Brian bit off of Little Drummer Boys... funny stuff.

 

[pcake]

my son is an avid star wars collector, and i'm a fan of several brands of toys. as such, i've spent many years going to TRU.

back in the '90s, TRU stores were clean, well stocked and well organized. the people who worked there seemed to want to help. these days the culver city store looks like a bargain basement place, with little personality, worn out displays, shelves and floors and overworked reps who sometimes don't care while others care but are hopelessly overworked. the store carries some cheap crappy stuff, not even always toys, that the put in the front and main aisles of the store to make it look less like a toy store. it's sad if they go under, but honestly they're not the store chain they used to be.

i gather that walmart has been outselling them when it comes to toys for years now, or so i've read on CNN money a few times.

we used to have fun going to TRU stores - we'd sometimes hit four or five stores with a stop for lunch. the stores just aren't fun any more, so we don't bother, and it's the stores themselves that made us less inclined to go there. as far as i can see when we do drop in, some are running on fumes, and that's not an environment that makes me happy to be there.