Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies

Transformers News: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies

Wednesday, October 25th, 2017 6:03PM CDT

Categories: Company News, Store News
Posted by: Bounti76   Views: 16,702

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Fellow Seibertronian d-maximus_Prime has pointed us to an article on CNN's Money Section, regarding Toys "R" Us' bankruptcy, and how it's expected to affect toy sales this Christmas shopping season. Hasbro's CFO, Deborah Thomas, said that while 3rd quarter sales and profits were above forecasts, 4th quarter sales were now expected to be only slightly higher than last year, which is a significant drop from where they had been expected to be.

You can read the full article by clicking here. What do you think of this latest development? Discuss it in our forums below!
Credit(s): d-maximus_prime
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Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918398)
Posted by Sunburnninja on October 25th, 2017 @ 7:08pm CDT
Im pretty sure their prices are taking part in this too, not just TRU
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918401)
Posted by Nightbeat339 on October 25th, 2017 @ 8:18pm CDT
Makes sense. My local TRU only has TLK wave 1, a couple of Triggerhappys and Twinfernos, and some random RiD figures. I've been waiting for them to get the latest waves of Titans Return for months now.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918403)
Posted by Megatron Wolf on October 25th, 2017 @ 9:04pm CDT
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU


Took the words right out of my mouth, any lose they have is not just because of TRU. High prices alienating people from buying and terrible distribution making people who want to buy unable to is going to lose you money. Just hope its enough to get them to rethink what they're doing otherwise the lose is just going to get bigger.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918416)
Posted by fenrir72 on October 25th, 2017 @ 10:56pm CDT
Simple answer. Either you buy at retail cost or the company goes belly up. What's so hard to digest with that? If them toys are too dang expensive, it shelf warms. Then the store stops ordering the items. Less orders, less drive for the manufacturers to R and D leading to the toyline's eventual demise.

Market forces PEOPLE!

Also, buyer preference now has convenience as a priority over the rush and tumble business model of shopping real time. Stores must adapt to these trends. Mall type models are really taking a hit on this.

For TRU, the confluence of these factors equals...................this!
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918436)
Posted by Carnivius_Prime on October 26th, 2017 @ 5:16am CDT
Nightbeat339 wrote:Makes sense. My local TRU only has TLK wave 1, a couple of Triggerhappys and Twinfernos, and some random RiD figures. I've been waiting for them to get the latest waves of Titans Return for months now.



Yeah my nearest Toys R Us only got in wave 4 of Titans Return a short while ago after shelfwarming previous waves for months and TLK stuff hasn't moved past wave 1 even after DVD of the film has been released. I bought my TLK Prime and Barricade from Toys R Us when Wave 1 first came out and would have bought more waves if they had been available to me. As it is I had to get Megatron and Sqweeks elsewhere and recently ordered W3 Bee and Cogman online too.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918453)
Posted by william-james88 on October 26th, 2017 @ 9:23am CDT
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU

We cant be sure. The revenue lost by less items bought due to price increases could be offset by the increased revenue from higher prices.

Hasbro has economists and actuarial mathematicians to plan prices out, I dont think any of us are qualified to be sure of anything.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918496)
Posted by Aimless Misfire on October 26th, 2017 @ 2:27pm CDT
Does anybody remember the Gulf war when the gas prices went through the roof? Hasbro blamed the skyrocketing prices of oil for their price hikes. Then the price of oil came back down but Hasbro never lowered their prices.

Now they keep raising the prices & can't even get their product into stores. And we're supposed to feel sorry for them. Oh boo hoo! :-(
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918499)
Posted by william-james88 on October 26th, 2017 @ 3:13pm CDT
Aimless Misfire wrote:Does anybody remember the Gulf war when the gas prices went through the roof? Hasbro blamed the skyrocketing prices of oil for their price hikes. Then the price of oil came back down but Hasbro never lowered their prices.

Now they keep raising the prices & can't even get their product into stores. And we're supposed to feel sorry for them. Oh boo hoo! :-(

I dont think anyone is feeling sorry for them. I feel sorry for the fans with the whole distribution woes. They make no sense for anyone. TRU and Walmart wouuld want wae 2 TLK to be in stores during summer when the film is hot so why not have them there. While it is not Hasbro`s problem to ensure that walamrt stocks the toys once they buy them I feel that its a worthwhile issue they should look into when their vedors make visits.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918566)
Posted by RAR on October 27th, 2017 @ 1:17am CDT
Megatron Wolf wrote:
Sunburnninja wrote:Im pretty sure their prices are taking part in this too, not just TRU


Took the words right out of my mouth, any lose they have is not just because of TRU. High prices alienating people from buying and terrible distribution making people who want to buy unable to is going to lose you money. Just hope its enough to get them to rethink what they're doing otherwise the lose is just going to get bigger.


Indeed High Prices is exactly what is putting me off - it's a bit like the Superlink era where one could buy Japanese toys for less than American ones.

In that now One can buy some imports for less than you can buy something in a Supermarket or if not less such a small difference it's worth the extra couple of quid to get a "free" Headmaster.

For example I just bought a Legends Ravage for £14.00 and my Toymaster charges £13.99 for Legends class (when it has them) so I got a Headmaster for an extra 0.01 pence and a Ravage with a nicer sticker.

Even better for those who use Taibao. I can say in all honesty this is the least "Offical" Transformers I've bought in a given year this century and Last year was also the worst at the time.

Simply because I couldn't find ANYTHING. the last time it was this bad was one year during Prime when there was nothing for 9 months and then it all showed up at once in Home bargains at clearance prices.

I mean seriously even with a slightly reduced Pound value Deluxes prices going from £14.99 to £22.99 in a year is plain daft.

But just look at some of the Star Wars pricing too. They know that this kills lines as it has pretty much destroyed marvel Hasbro toys across Europe.

But the real insult isn't just the odd nature of the pricing ( A deluxe costs nearly the same as a Voyager and nearly the same as that Rescue Bots Bumblebee Dragon with the two dragon Minicons too).

Some people have seen £65.00 Leader class prices in the UK - which is quite obviously idiotic. It's a shame really as I was really enjoying Titans Returns until the prices went nuts and the availability vanished.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918588)
Posted by Rated X on October 27th, 2017 @ 8:47am CDT
Get rid of Babies are Us and stop trying to compete with walmart in baby supplies. Stick to what put you on the map in the first place...toys. Problem solved.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918648)
Posted by william-james88 on October 27th, 2017 @ 3:50pm CDT
If Toys"r"us sells Toys, what does Babies"r"us sell?
:D
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918655)
Posted by Stuartmaximus on October 27th, 2017 @ 4:25pm CDT
william-james88 wrote:If Toys"r"us sells Toys, what does Babies"r"us sell?
:D

the same >:oP
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918721)
Posted by King Kuuga on October 28th, 2017 @ 6:51am CDT
Rated X wrote:Get rid of Babies are Us and stop trying to compete with walmart in baby supplies. Stick to what put you on the map in the first place...toys. Problem solved.

It's funny, because the company that became Toys R Us was actually founded as a children's furniture store, which soon added baby toys. So, arguably, what would become Babies R Us came first.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918810)
Posted by Va'al on October 29th, 2017 @ 3:33am CDT
We have received communication from Dave Brandon, the CEO of Toys'R'Us, given all the news about their Chapter 11 process and its repercussions on Hasbro and toy sales in general for this year, speaking on how the stores will be dealing with it all, and how they plan on assuaging some fears of the general public. You can read the whole message below, and join the conversation in the Energon Pub.

[quote] Dear Valued Customer,

As you may know, in September we announced that we were beginning a formal process – known as Chapter 11 – designed to strengthen our financial position and allow us to reinvest in our business. This was a proactive and voluntary move that gives us the opportunity to reset and do the things necessary to continue to earn your business now and well into the future.

I’m writing today because I want to assure you that you can continue to shop with us with confidence, in store or online. Your local Toys"R"Us and Babies"R"Us stores are open and our team members are standing by ready to help. You should also know that we are continuing to honor our various customer programs including Registry, Endless Earnings, Geoffrey's Birthday Club, gift cards and warranties.

With the holidays just around the corner, we have a number of exciting things in store for you:

Price Match Promise¹ – If you find a toy or baby product at a lower price at one of our competitors, Toys"R"Us will match the price. Not only will we match competitor’s prices in store, we’ll donate an additional $1 to Toys for Tots every time you price match now thru 12/24, up to $1 million.

Parents Night Out² – As a parent, I found it was always tough to find time to shop when the kids weren’t looking, so this year Toys"R"Us is hosting special events on Sunday, November 12 and Thursday, November 30 from 8-10pm local time. During these very special events, customers will have access to a shopping expert, hot toy demonstrations, games and treats (think hot chocolate bar, raffles and more) plus a sweepstakes where Rewards"R"Us members have a chance to win a trip for 4 to New York City.

Layaway and Then Some³ – We will once again offer free layaway services this holiday season, waiving the usual fee. Plus, every single day from Sunday, November 5, through Saturday, December 9, Toys"R"Us will select one layaway customer who will receive a $200 TRU gift card to put towards their layaway.

Play Lab – I have seven grandkids who would love nothing more than to visit one of our stores to test drive the newest toys. On Sunday, November 1, forty-two Toys"R"Us locations across the country will open designated play spaces in their stores. Shopping list meets play time.

Play Chaser™ – Our new augmented reality gaming app is turning our toy stores into an interactive playground. It’s also connected to our much-awaited holiday catalog, The Ultimate Guide to Play. Kids can now build their favorites list using the app.


These are just a few of the exciting changes I’m most excited for this holiday. No matter how you choose to shop with us, know that you can continue to count on us for an outstanding experience. We have been in the business of bringing joy to kids for nearly seven decades, and we welcome the opportunity to serve you this holiday season and long into the future.


Sincerely,


[/quote]
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918819)
Posted by Stuartmaximus on October 29th, 2017 @ 6:57am CDT
apart from their bloody prices! :-x
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918857)
Posted by hurricane567 on October 29th, 2017 @ 12:06pm CDT
Yes, there's a huuuuge profit margin on those Bumblebee headphones, but only if someone buys them! The profit margin on an actual Bumblebee Transformer might be a lot less, but the odds of it getting sold are much better.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918875)
Posted by cloudballoon on October 29th, 2017 @ 2:38pm CDT
Here in Canada, I don't get how we can complain much about TRU's TF toy prices. Their main line TF prices are only a few cents higher than Walmart's. Like $19.99 vs. $19.97 for a TR DLX. They have similar prices for Legend, Deluxe and Voyager except Leader - TRU is $5 more expensive than WM.

But TRU runs far more sales on TF toys than Walmart & price-match. I'd say 75% of my TFs were purchased at sale prices (through sales of the week or rain checks from previous sales) at TRU.

TRU exchange policy is also better. I can exchange any figure from the same line to a different one with minimum hassle. This is not possible at Walmart.

Only thing I can complain are the shelf-warmers, but that's not *my problem* per se, as I can get TF figures I want 90% of the time at TRU... eventually. I'm just concern the losses incurred on TRU's finances about those shelf-warmers.

If we all want TRU to get through this tough time, we should find out how TRU can help themselves by improving their purchasing analysis. We (collectors & parents) can only buy so much BBB, OP & repaints before we collectively say "enough, don't need another similar BBB/OP"? Hasbro can also help out too.
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918883)
Posted by dragons on October 29th, 2017 @ 4:42pm CDT
Stuartmaximus wrote:apart from their bloody prices! :-x


That is no different then buying toy from bigbadtoystore tfsource, robot kingdom , amazon and eBay ToysRus prices are cheap compare to online stores online store you pay for shipping and handling and tax and if you want free shipping at certain online stores you need spend certain amount plus Walmart is cheaper but there selection sucks take your pick.,

Pay double for deluxe figure at online store with shipping and handling plus tax, or go to Walmart with cheaper prices and toy your theme your looking for only takes two shelf space racks on one big aisle I look at walmart transformers section and others Toysrus selection for those have bigger selection same with target compared to walmart
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1918904)
Posted by shajaki on October 29th, 2017 @ 7:24pm CDT
Seems to me that this is the statement they should have made in the first 24 hours of the Chapter 11 filing... >:oP
Re: Toys "R" Us Bankruptcy Filing causing Holiday woes for Toy Companies (1919014)
Posted by D-Maximus_Prime on October 30th, 2017 @ 12:53pm CDT
cloudballoon wrote:Here in Canada, I don't get how we can complain much about TRU's TF toy prices. Their main line TF prices are only a few cents higher than Walmart's. Like $19.99 vs. $19.97 for a TR DLX. They have similar prices for Legend, Deluxe and Voyager except Leader - TRU is $5 more expensive than WM.

But TRU runs far more sales on TF toys than Walmart & price-match. I'd say 75% of my TFs were purchased at sale prices (through sales of the week or rain checks from previous sales) at TRU.

TRU exchange policy is also better. I can exchange any figure from the same line to a different one with minimum hassle. This is not possible at Walmart.

Only thing I can complain are the shelf-warmers, but that's not *my problem* per se, as I can get TF figures I want 90% of the time at TRU... eventually. I'm just concern the losses incurred on TRU's finances about those shelf-warmers.

If we all want TRU to get through this tough time, we should find out how TRU can help themselves by improving their purchasing analysis. We (collectors & parents) can only buy so much BBB, OP & repaints before we collectively say "enough, don't need another similar BBB/OP"? Hasbro can also help out too.

One thing I've really noticed just with talking to Will is the difference between TRU USA and TRU Canada. To your points here, the price differences are huge in some cases. back in combiner wars, they were selling deluxes for $24.99 while every other store (Walmart, Target) were selling them for $14.99. and even now, their deluxes range from $16.99 to $21.99, while Target and Walmart are the same. TLK is a bit more at Target and Walmart, but they're only a buck or 2 higher per size class. So the TRU USA Price difference is fairly significant.

Our TRU's do not do many sales either. If a figure goes on sale, it is almost always a simplified figure, not part of the main line. And if it is part of the main line, it's very expensive and not selling (Cybertron).

Exchange and price matching at TRU USA are BS too. You must have proof of the exact same figure, not size class, same figure to the name and packaging, to price match, and if you have to do that, why even both buying it there when you can buy it where you saw it? (I learned that with the combaticons, they would not price match them).

Honestly, TRU USA is only good for exclusives, that's about it. Prices are much higher, they are usually behind the other stores with stocking (RiD Bisk and Paralon are very popular sights around here still while Walmarts and Targets have Soundwave and Blurr), and their policies are not good either. They need to make some changes if they don't want to go bankrupt. Their USA stores and policies are flawed.

Also, Dragons: TRU USA has prices on par or worse than online, and often times here their selection is not that good, even online. How many times have I seen a figure I want on TRU.com and it says "store only" and can't be bought online. Too many. So shopping at TRU is a lot like BBTS and the such pricewise, but there are better options and more updated product-wise options, so I would rather buy from BBTS than TRU since they are more reliable

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