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| The Death of Toys R Us and what it will mean. |
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| Howard_Casto:
So in case you've been in a cave, Toys R Us is going under and will eventually close all of it's US stores. They are the last toy store, so this is decidedly bad. Because there are many Toys R Us exclusive toys and they offer more shelf space for toy manufacturers than any other store, experts are estimating that 15-30% of toys sales are going to die off and will never come back. What makes things worse is the fact that the toy industry in general hasn't shown much growth in the past few years. Couple that with the sales loss and we are going to eventually see several toy brands go under. The games industry will be effected as well. I've said it in the past, but one of the main reasons video game companies try to still have a brick-and-mortar presence is the free advertising. While AAA games get tv commercials and various online advertising, the budget titles normally don't. For them that shelf space is crucial to get the word out that their game is available or that it even exists. It really comes back to shelf space. The second biggest toy and video game store, Walmart along with all the lesser stores over a very limited space for games and even less for accessories. Amiibo and Skylanders might be the first casuality as both Walmart and Target seem to be phasing out the sale of the space-hungry do-dads in most areas. You aren't going to see a lot of specialty controllers either. You know the auto-industry was bailed out because it was deemed to big to fail. I honestly have to wonder why people aren't getting worried over this one. Forget all the fun stuff going away, this is going to cost a lot of jobs as it could destroy an entire industry. |
| Nephasth:
--- Quote from: Howard_Casto on March 16, 2018, 01:23:58 pm ---You know the auto-industry was bailed out because it was deemed to big to fail. I honestly have to wonder why people aren't getting worried over this one. Forget all the fun stuff going away, this is going to cost a lot of jobs as it could destroy an entire industry. --- End quote --- ...in China. |
| pbj:
Another casualty of Bain Capital. They killed KB Toys, too. Kids just want tablets anyway, no need for toys. |
| JDFan:
Figure in 2016 toy stores only accounted for about 12% of overall toy sales ( Source - https://www.statista.com/statistics/750801/toy-sales-share-by-distribution-channel/ ) - so the loss of even the last toy store will not really effect overall sales by much as 12% of sales can easily be picked up by the mass market/online sales channels. There just isn't enough profit margin in the toy sales to support a store that only sells toys to remain competitive. |
| Titchgamer:
I dont think it will kill the industry. Toys R Us are the same as alot of the other big names that have gone under recently. I think a combination of their own success and not willing to roll with the times has killed them off. Ime not sure about state side but over here they were damn expensive! I dare say the reason for that being the shear size of the place and the staff makingfor large over heads. Why pay £40 when you can pay £20 off amazon for the same thing. Yeah its kind of sad as you can no longer look and touch before you buy but thats just the way the modern sales industry works. Obv car sales are a bit different as you cant really mail order a new motor for a test drive lol |
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