Who will fill the retailing void left by Toys ‘R’ Us?
With Toys “R” Us exiting, Tim Hall, CEO of analytics startup Simporter and a former Hasbro executive, believes grocery stores could be well positioned to pick up the missing volume.
The regular traffic to grocers could support more off-season sales for an industry highly dependent on the weeks before Christmas.
“In a summer display, they might put swim toys by the sunscreen or next to beer coolers,” Mr. Hall told the Washington Post.
Writing for Motley Fool, Daniel Kline posits Toys “R” Us’s exit opening the door for Barnes & Noble to reemphasize and expand its toy line into more mass-market products. He contends Walmart and Target aren’t set up to upsell higher-end or lesser-known toy items.
A few articles have noted that independent toy stores may benefit from the chain’s demise. Many independents claim to be doing well by focusing on selling international and niche brands, being able to answer parents’ questions and letting kids try toys.
A March survey from Coresight Research asking Toys “R” Us shoppers where else they had purchased toys or games over the last 12 months shows that dollar stores, department stores, warehouse clubs, eBay, Five Below and Disney Stores could be other candidates to capitalize on some of the lost toy sales.
KB Toys is speeding up its relaunch to capture the lost share. Obviously, the big-three that crushed Toys “R” us over the years — Walmart, Amazon and Target — are expected to benefit.
Hope has appeared to fade that Toys “R” Us may come back as a result of a $675 million bid by a group led by Isaac Larian, founder of MGA Entertainment, after the retailer rejected the offer. The Wall Street Journal reports that Mr. Larian’s offer did not meet the threshold for bids established under the auction procedure approved by the bankruptcy court.
“The liquidation of Toys ‘R’ Us is going to have a long-term effect on the toy business,” Mr. Larian said in statement before his bid was rejected. “The industry will truly suffer. The prospect of bringing the Toys ‘R’ Us experience to a new generation, my new grandson’s generation, is enough to motivate me to save Toys ‘R’ Us.”
- RIP Toys R Us: Why grocery stores could be the salvation of toy makers – The Washington Post
- This Retailer Could Fill the Void Left By Toys R Us – Motley Fool
- Local toy stores are thriving as Toys “R” Us is dying – CNN
- Magic, expertise and service help independent toy retailers – Mining Journal
- Isaac Larian Puts in Official Bid to Save Toys”R”Us – MGA Entertainment
- This billionaire toy executive has a last-ditch mission to save Toys R Us, before it’s too late – The Washington Post
- Toys ‘R’ Us Rules Out Billionaire Bratz Maker’s Offer – The Wall Street Journal
DISCUSSION QUESTIONS: Which retailers and channels are best positioned to capture the volume lost by the exit of Toys “R” Us? What would be ideal for toy vendors and the toy industry? Do you see an opportunity for unconventional sellers?