For those who believe that focusing more online will be enough, get your head out of sand. Part of the sales will move for sure, but it is already evident that a big chunk will be erased. This will be huge for all toy manufacturer, including Mattel.
An analyst from Jefferies estimates that 10 to 15 percent of Toys R Us' total business will be lost if it liquidates.
https://www.cnbc.com/2018/03/09/10-percent-15-percent-of-all-toy-sales-could-be-lost-forever-if-toys-r-us-liquidates.html
I don't think we've shopped in a box store for the holidays for the past 3 years. Why would I want to go and interact with some minimum wage meathead who doesn't want to help me, can't answer a basic question, or wait on long lines when I could be doing something more productive. If retailers provided a premium service that made shopping like a day at a fancy salon then maybe we'd go. Otherwise? DIE TRU!!
When the stock hits a new low after first quarter results and the cash drain accelerates tell me your ok then. The only out at that point are our friends at Hasbro.
TRU was ALWAYS over priced anyway. Their demise has been written on the walls for years. People will shift their buying to more online and the other retailers. We will be ok.
What a pity that the people who shopped at TRU will never EVER learn about or be able to shop at Walmart, Target, Amazon, or anywhere else. They will never buy toys or diapers again. Cancel Christmas, birthdays, barmitzvahs, and babies.
Bye bye 2018. All that stuff on the water with nowhere to go. I went to a store this weekend and the employees looked pretty grim. Sad sad thing.
Well, you don't know the toy business if you think the impact is small. Toys are about kids and the experience of seeing, touching and experiencing the product. The estimates of negative impact are too optimistic. The toy industry in the US will be down at least 5%-7% in 2018. Any chance for innovation will be s---ed out of the business too.
Going forward, main focus needs to be online anyway. Today’s drop is simply an over reaction to the TRU news. Smart money jumps in now before the spring back - so simple it’s laughable.
If TRU it represents 10% of our total says and if, as this article suggests, 10% of those sales are incidental and will evaporate in the event of TRU demise, that's around 1% of our total. Hardly something we wouldn't be able to navigate, I mean we have brands (AG) that regularly post sales drops of 10, 20, 30% YOY are they're still kicking.
I’m in. The drive to MattHell is killing me. Great though if your in upper mismanagement and you can afford the beach close real estate. But they’ll be forced to sell soon themselves the way things are going. Unless they’ve banked a small fortune like some of the old timers that have milked the place dry.
Better yet move the whole operation to Buffalo. 👍
I know what we can do! First, everybody take a pay cut, say 20%. Then relocate the company to the Inland Empire with it’s cheap housing and cheaper land to build a new headquarters. Still better than relocating to, say, Texas. Everybody here feels there entitled to this beach close life style. Well you’re not anymore. Not the way things are. Time for a reality check. The upper management will have to get there asses out of PV, Hermosa Beach, Manhattan Beach, Pacific Palisades, etc. Drag them out there kickin’ and screamin’. For all us people that really do all the work, well, you’ll finally be able to afford a nice big house instead of some dump in Lawndale or wherever. Now we’re talkin’! 😁
That's not the half of it. All the inventory held by Toys R Us will be liquidated, whether to the public at deep discounts or to other retailers at deep discounts.
That means our sales will tank hard for months, probably all of 2018. And who knows what ripple effects this will have?
Not good, not good at all...