Author Topic: Toys R Us Files For Bankruptcy  (Read 3896 times)

ravenloft

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Re: Toys R Us Files For Bankruptcy
« Reply #30 on: October 02, 2017, 04:22:40 PM »
Noooooooooooo! They better not go out of business!

I will always be a Toys R Us kid.


I have shopped there since ever since I could remember and will continue to do so as long as they have stores to shop in. I simply enjoy the toy store shopping exprience. Last year one of the 3 Toys R Us locations closed in my city, this year another did, so I am left with the last store (within 50 miles at least) here's hoping it stays open for decades more.

KB Toystores, and Red balloon Toystores are few and far between scattered in a just few malls and strip malls.
Lionel Playworld, the other major toystore from my childhood is long gone.


I do use Amazon and Ebay to shop (usually for things that I cannot get otherwise), but I would always prefer to see the things that I want on a store shelf versus only available online.
« Last Edit: October 02, 2017, 04:28:25 PM by ravenloft »

Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #31 on: October 02, 2017, 05:18:48 PM »
Tell me why kids or parents would long for going to the store these days?

A quick and easy (depending upon the distance to the store of course) way to see, and touch, what toys are currently available.

 cl:)
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Crossbonez74

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Re: Toys R Us Files For Bankruptcy
« Reply #32 on: October 03, 2017, 06:56:51 AM »
You can get all that online on Amazon.. and it's cheaper. If you have Amazon Prime it will be there in two days.

Don't get me wrong, I would love to walk into a Toys R Us and find a well stocked toy isle with the toys I'm looking for.

I would also love for them to be lowest priced toy store and have exclusives available.  As a parent I can't find the toys my daughter wants either.

They were out of stock with Hatchimals (which is what she wanted), they only had peg warmer Star Wars figures in stock, and no Universal Monster stuff.

If parents can't find the hot toys for their children at Christmastime they will go elsewhere to find it.
« Last Edit: October 03, 2017, 07:09:49 AM by Crossbonez74 »

Big Bad Wolf

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Re: Toys R Us Files For Bankruptcy
« Reply #33 on: October 03, 2017, 10:23:41 AM »
There are some perfectly valid points being made, but I can't help but notice an odd loop occurring where the reason stores like Toys R Us have so many problems is because of the rise of online stores like Amazon, so to avoid dealing with those problems, it's better to...shop at online stores like...Amazon...

So Amazon causes problems for Toys R Us, so the solution is to shop at Amazon instead. Obviously this is simplifying things, and there are all sorts of other variables to consider. But it's still weird, to me anyway.

One thing I can say is, any time I've been near a toy aisle at Walmart or Target or even K-Mart, there's been a kid or two yelling and screaming because they desperately want to look at the toys and pick something out that they want. So I'm not quite so sure that it's a matter of kids not liking toy aisles and toy stores anymore, it might be an issue with the parents. As has been pointed out, things like customer service, item selection, quantity of items stocked, variety of items, etc, are valid issues to consider, but I think these are things parents notice more than kids. Not to mention the influence of the economy overall.
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Crossbonez74

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Re: Toys R Us Files For Bankruptcy
« Reply #34 on: October 03, 2017, 11:02:04 AM »
Good Points. I just find it rather ironic that toy sales rose by 3% this year but the leading Toy Store is going bankrupt. 

Big Bad Wolf

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Re: Toys R Us Files For Bankruptcy
« Reply #35 on: October 03, 2017, 11:21:25 AM »
Good Points. I just find it rather ironic that toy sales rose by 3% this year but the leading Toy Store is going bankrupt.
Well, YoungestMonsterKid did point out that equity firms basically screwed them over, but the looming specter of online shopping is still present. I just find it strange how it's such a self-fulfilling prophecy. "Amazon ruined Toys R Us, so now I do all my toy shopping on Amazon."
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Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #36 on: October 03, 2017, 11:30:27 AM »
You can get all that online on Amazon.. and it's cheaper. If you have Amazon Prime it will be there in two days.

I would also love for them to be lowest priced toy store....

But that's it precisely! The business model on which Toys-R-Us was built and with which it prospered for decades doesn't enable the chain to compete on the basis of price. Walmart and Target have far greater economies of scale, and Amazon's warehousing costs are far lower than the cost of operating a network of toy stores. That, and the debt level, are the problems Toys-R-Us is facing and honestly I see no way out for the chain. 

I think Toys R Us got themselves into this situation through bad customer service, poor stock, and failure to adapt to changing market trends.

You're criticizing them for both coming and going. A store cannot, let me repeat, cannot have both good service and the lowest prices. There's a very real cost to providing good service. Therefore you have to choose between the lowest prices and good service.

And American consumers have chosen. They've made their choice on the basis of price. Far and away the most successful retail models are Walmart and the other suburban big box stores. The net result of consumers exercising this preference has been the hollowing out of the downtowns of American cities (the donut effect), and the erosion bordering on complete disappearance of the American manufacturing sector plus the well paid jobs that were previously available in the manufacturing sector.

Yet somehow many/most Americans decry the evaporation of high paying manufacturing jobs while refusing to buy American made goods if they cost more (which of course they must if payrolls are higher). It is to scream. You can't have it both ways.

 cl:)
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Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #37 on: October 03, 2017, 11:35:30 AM »
There are some perfectly valid points being made, but I can't help but notice an odd loop occurring where the reason stores like Toys R Us have so many problems is because of the rise of online stores like Amazon, so to avoid dealing with those problems, it's better to...shop at online stores like...Amazon...

So Amazon causes problems for Toys R Us, so the solution is to shop at Amazon instead. Obviously this is simplifying things, and there are all sorts of other variables to consider. But it's still weird, to me anyway.

Indeed. There's an irrational self-fulfilling element there.

 :-\
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Big Bad Wolf

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Re: Toys R Us Files For Bankruptcy
« Reply #38 on: October 03, 2017, 12:15:05 PM »
There's an argument I've seen a lot when discussing book selling that I think may apply to toy selling too. There's been a curious shift in the way we shop in terms of what it is we're looking for and how we look for it. When I go to a Toys R Us, I'm not going there looking for a specific thing. I go there to see what they have, and if there's anything they have that I like. Shopping online has shifted the mindset a bit. Now people go to big sites like Amazon, or even toy-centric sites like BBTS, and look for the specific items they crave.

Granted I'm more likely to smell a sasquatch fart than I am to get enough money in my hand to shop there, not to mention I'd have to travel a bit to find the nearest store. But I think the value of discovery is being lost. It's affected book selling and libraries, since people now tend to look for specific books or authors that they want instead of browsing for something that catches their attention. It seems toys have that problem too now.

Of course, as I alluded to earlier, economic issues may have a part to play. Discovery shopping is easier to do when you can afford to do it. For many people, specific shopping likely occurs in part due to tighter budgets narrowing one's interests out of necessity.
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Crossbonez74

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Re: Toys R Us Files For Bankruptcy
« Reply #39 on: October 03, 2017, 12:18:40 PM »
But that's it precisely! The business model on which Toys-R-Us was built and with which it prospered for decades doesn't enable the chain to compete on the basis of price. Walmart and Target have far greater economies of scale, and Amazon's warehousing costs are far lower than the cost of operating a network of toy stores. That, and the debt level, are the problems Toys-R-Us is facing and honestly I see no way out for the chain. 

You're criticizing them for both coming and going. A store cannot, let me repeat, cannot have both good service and the lowest prices. There's a very real cost to providing good service. Therefore you have to choose between the lowest prices and good service.

And American consumers have chosen. They've made their choice on the basis of price. Far and away the most successful retail models are Walmart and the other suburban big box stores. The net result of consumers exercising this preference has been the hollowing out of the downtowns of American cities (the donut effect), and the erosion bordering on complete disappearance of the American manufacturing sector plus the well paid jobs that were previously available in the manufacturing sector.

Yet somehow many/most Americans decry the evaporation of high paying manufacturing jobs while refusing to buy American made goods if they cost more (which of course they must if payrolls are higher). It is to scream. You can't have it both ways.

 cl:)


While I feel pity for companies such as TRU, Sears, or K-mart I feel no desire to want to patronize them anymore. Should I shop there out of pity for them? Those failed businesses got themselves into their respective predicaments...not the customer. They didn't adapt to a changing market and they got left behind.  Wal-Mart and Target offer both well stocked stores and robust online offerings. They adapted and they have thrived while others have floundered. Perhaps they can look there for inspiration.

Have nice day ~


Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #40 on: October 03, 2017, 01:48:26 PM »
Those failed businesses got themselves into their respective predicaments...not the customer. They didn't adapt to a changing market and they got left behind.

But what you've been doing though is criticizing them for failing to adapt. Sometimes though there's no way to adapt. The world has changed. The previous strengths of Tors-R-Us won't help the chain. Their market niche has dwindled dramatically.

Wal-Mart and Target offer both well stocked stores and robust online offerings. They adapted and they have thrived while others have floundered. Perhaps they can look there for inspiration.

Somehow Walmart stores have always offended my aesthetic sensibilities, part of the reason being that I'm not exactly a big fan of the made in China thing. Nor am I a fan of the suburban shopping experience:

Gallery of Walmart Shoppers

I'm therefore willing to concede the savouring of the Walmart shopping experience to others.

 ;)
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Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #41 on: October 03, 2017, 02:21:43 PM »
Toys R Us, in fact made a lot of money last year. Actually what's going on has nothing to do with their sales.

Misleading. Toys-R-Us earned $460 million in 2016 before interest expenses/debt service requirements. And that's why Toys-R-Us is filing for Chapter 11.  Toys-R-Us can't pay its debts.

It has to do with equity firms which used Toys R Us as a pawn to have to suffer for their bad business deals in completely unrelated areas.

Huh?!!! Toys-R-Us has filed for Chapter 11 for the simple reason that it can't pay its debts. There's no conspiracy here. An element of incompetence/stupidity on the part of the creditors, yes; but conspiracy no. I for the life of me don't understand why the banks and other lenders were willing to advance the $7.5 billion or so in 2005 that the hedge funds needed to finance the leveraged buyout of Toys-R-Us secured it seems by only the assets/business of Toys-R-Us. There's no way that transaction could have passed any of the standard textbook lending tests, e.g. debt/equity ratio, interest coverage, etc. It's the lenders who are now holding the bag therefore and facing a very serious haircut. They actually deserve to be horse-whipped for incompetence of this magnitude.

So basically, so many of you were blaming kids when it was actually old people's fault. As usual.

Blame isn't the right word. But the shift in kids'' preferences over the last 25 years to almost exclusively video games has seriously hurt Toys-R-Us. Massive brick and mortar stores aren't essential when it comes to selling video games. The market share Toys-R-Us commands in the video game area has now dwindled to 1%.

 :-\
« Last Edit: October 03, 2017, 03:23:14 PM by Hepcat »
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BRICK

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Re: Toys R Us Files For Bankruptcy
« Reply #42 on: October 03, 2017, 04:52:11 PM »
    I, for one, will very much miss the brick and mortar toy stores, like Toys-R-Us, should it go under. While I would completely agree with some of the criticisms people have made: high prices, a general lack of selection (with some characters and product lines being way, WAY oversaturated [i.e. Disney, Lego] at the expense of others), unruly children, angry parents. Never the less, I still enjoy going to the toy store. Maybe it is just nostalgia from my childhood, but I think that there is something more.

     While I pretty much know what Universal Monster items are going to be coming out well in advance, that was not always the case. Back in the early 1990ís, walking into a Toys-R-Us and seeing all the Uncle Milton glow monsters (for $1.99!), the beautiful Golden UM puzzles, even the (gasp) Imperial UM figures; that was pure joy. These TRU items helped to get me back into collecting monsters, after a long absence. And over the years TRU stocked the Sideshow figures, the reproduction Aurora long boxes and a bunch of other great stuff. While itís easy to damn them for not having enough UM merchandise; they canít stock that which is not produced.

     Another thing; when it came to something like action figures, brick and mortar stores allowed you to actually pick out your item. That is to say, you could compare duplicate figures to see which had the better paint job or detailing, or see how big it really was (i.e. those Neca ď12 inchĒ Godzilla figures, that were measured from head to tail), you canít do that online.

    But what I like most about toy stores is just the treasure hunt. As I said, I basically know what UM items are out there, but I donít keep up that much on other characters I like. So 9 out of 10 times I will go in there and find something really cool that interests me; whether that be something from Godzilla, Planet of the Apes, Dr. Who, Alien, even retro Hulk/Marvel stuff. While I donít always buy them, it is interesting just to look, and sometimes get ideas on how to customize figures.

    Finally, while itís rare that UM items last until the clearance stage, it has happened before.
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Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #43 on: October 04, 2017, 09:58:08 AM »
I would also love for them to be lowest priced toy store and have exclusives available.  As a parent I can't find the toys my daughter wants either.

They were out of stock with Hatchimals (which is what she wanted), they only had peg warmer Star Wars figures in stock, and no Universal Monster stuff.

If parents can't find the hot toys for their children at Christmastime they will go elsewhere to find it.

Hopefully we're not going to end up seeing your picture in the newspaper as one of those parents at Walmart fighting over the last specimen of that year's must-have toy. I should have been so spoiled as a kid. Most of us here on UMA were not.

 ???
« Last Edit: October 04, 2017, 10:38:34 AM by Hepcat »
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Hepcat

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Re: Toys R Us Files For Bankruptcy
« Reply #44 on: October 04, 2017, 10:36:48 AM »
I've always had mixed feelings about Toys-R-Us. What I didn't like was that it was a category killer and had put the dedicated mom-and-pop toy stores out of business.



However I liked the selection. As a result Toys-R-Us used to be my go-to store for buying scads of toys for Salvation Army kids at Xmas in the 1989-2007 period.

And if Toys-R-Us disappears, I fear that the available selection will also be reduced. Retailers like Walmart tend to stock many multiples of the hottest selling toys that season. Their business strategy is actually based on precisely that. But less popular toy lines are accordingly hard to find at mass merchandise retailers such as Walmart. (Just like the record/CD sections of the mass market retailers never offer the selection of older releases by lesser known artists that dedicated record stores carry.) But it's all about selection to a non-mass market oriented consumer with idiosyncratic preferences such as myself.

 :(
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