Toys R Us to close 200 more stores.

NSA

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Yeah, it'll have an impact, but it'll settle down after a bit like everything else.

If TRU was the last one to still be stocking 1:18 vehicles or something it'd be more of a shame, but they moved away from my tastes just as much as everyone else. The GI JOE exclusives were nice in theory, but I didn't even buy any of those in the last few years.

Hasbro should just sell them on their toy store direct and be done with it.

I wonder if smaller toy stores might make a mini-comeback?

We need to find an old TRU to take over! Violently if needed! ATTICA!
 

pcsguy88

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One of my TRU’s is a stand-alone next to a bulldozed mall and the other is in a mostly empty shopping center across from the rich mall I’ve previously talked about. They will be completely ghosted.
 

nacho

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Ours is in a shopping center that has seen better days. The only thing of note is the Traders Joe's next door and the Barnes & Noble that anchors the other end. With TRU gone, I assume TJ's will move and B&N's days as a company are probably numbered anyway. The whole thing will be bulldozed for a new Applebee's or some shit in five years.
 

K-Tiger

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Ours is in a strip mall that has an Academy Sports, a Petsmart, an Aldi that was once a Circuit City, plus a regional liquor joint. Who knows what they'll put in Toys R Us' place.
 

ThunderDan19

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Our TRU is in a new plaza that's anchored by a super Kroger and an Olive Garden. That plaza has already lost a local BBQ joint, but should survive due to the preferred location in the most desirable area of town across from the most popular town center type mall in town. Something will pick up the slack. Not sure what though.
 

nacho

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As long as the locations aren't stuck in malls, I'm down with anything that gives us more choices. KB was the king of getting a lot of inventory into a little space. They didn't f#$% with bikes and baby junk, just honest-to-goodness popular kid toys.

While any new brick-and-mortar chain will struggle to compete head-to-head with WM and Amazon, I think they could offer a lot of what we like about TRU in a much smaller space, with much less overhead. They could make stores that still dwarf the WM toy isle but are far more manageable than a giant TRU.

I wouldn't bet on them succeeding, but I'll be happy if they do.
 

pcsguy88

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The article says they this has been in the works for a year, but delayed since TRU existed. Since TRU is out of the way, they are now talking to execs of TRU, Kaybee and the toy companies to build a successful business plan that can compete with WM and Amazon. They want stores open by Christmas and they understand how being in a mall destroyed the original Kaybee.
 

K-Tiger

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I saw that on the Chan last night. It almost seems too good to be true. Yes, keep them far away from the malls. Though those mall locations had a pleasent...packed feeling?

I hope MGA is successful in saving at least some of the TrU stores.
 

NSA

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It would be interesting to see that come back.. they need to stock good stuff though! And not at exorbitant rates!

I can't see an adult-toy collector oriented store doing very well though.
 

K-Tiger

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Rumor is that LEGO is pulling their product, which isn't at all surprising. Also heard that stores are still getting other products in.
 

pcsguy88

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It would be interesting to see that come back.. they need to stock good stuff though! And not at exorbitant rates!

I can't see an adult-toy collector oriented store doing very well though.
I get the feeling our generation is a one off of adult collectors and we are getting older, buying much less. The gen behind us was the beginning of the end of toys with all their fancy video games.
 

NSA

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"Collectible" crap though is still semi-popular I think, and that still should fall under the toy realm.

Millennials and youngers don't really have the brand-name toy lines to look at like we did.. but they have movie/game tie in shit up the wazoo. Guess that stuff is made for adults mostly in the first place anyway.. not weird ass adult man children like us co-opting kids stuff :)
 

nacho

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Rumor is that LEGO is pulling their product, which isn't at all surprising. Also heard that stores are still getting other products in.
How does that work exactly? Can they force TRU to crate it up and ship it all back? And even if they had agreements that said as much, how would they enforce them on a liquidating retailer? I assumed that whatever TRU had in the warehouse already was a lost-cause for manufacturers.
 

K-Tiger

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LEGO might eat the cost of return just to avoid having 800+ stores worth of inventory hit the closeout market. Too bad we don't know what they did when KB folded.
 

nacho

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Even if they were willing to pay to get it back, how can they force TRU to comply? Or does LEGO have teams of enforcers that go around to all the stores/warehouses and just take stuff by force? I'm sure TRU would rather sell the goods than have LEGO snatch the stuff from the shelves.

I agree that LEGO, who just reported poor 2017 sales, would not want a bunch of close-out merch eroding the sales from other channels... but I just don't see how they have any leverage to do anything about the stuff TRU has in it's possession already. But then again, I haven't followed retail liquidations closely in the past, so I'm no expert.
 

nacho

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I've thought about that more than once! I can just see that stupid giraffe, laughing at all the people rushing to buy stuff b/c they're going under... and then everybody's hometown TRU suddenly becomes part of the "special 200" that gets saved. Who's going to count?!

It's all a clever ruse to boost sales and get rid of the brits. :laugh:
 

K-Tiger

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Liquidation sales for all the stores that hadn't already been on the block start Thursday, and are to run until June. Distribution centers will close before the stores. Still hope for the Canadian branch, maybe not so much for the top 200 U.S. stores.
 

nacho

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I don't know if my store would have been in the top 200 anyway... I mean, it's the only one in a 90-minute radius and has been there as far back as my childhood brain can remember, so it's obviously done ok, but it's not like the place was constantly packed.

What's mostly frustrating about this is that it didn't have to happen. While toys are a cutthroat, low-margin business, it was the interest payments on the 5B debt that took them down. Amazon and WM didn't help, but without all that debt, I assume TRU could have continued as an ongoing concern much longer. Maybe the Nu-KB will have better luck. Assuming we get one of their pop-up stores in november, I know I'll be inclined to try to do some holiday shopping there in hopes of getting one of the permanent locations.
 

NSA

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Crazy.. I am not sure if I'm even going to bother.. maybe get one thing for nostalgia sake.. but the liquidation sales are either price fucked, or so looted there is nothing good left.
 

nacho

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Yeah, I don't see myself making any special trips either. I'll stop by if I'm in the neighborhood, but I assume that everything will still be priced above amazon, or it'll just be the 26th of December dregs leftover. I don't expect to have any spectacular hauls out of the whole affair.

But to be fair, there isn't much I'm looking for either. Unless they're firesale-ing legos or megabloks, what would I care about? They don't normally have any Marvel Legends worth buying, so I can't expect any during liquidation.

I have a Dr appointment near my TRU mid-april. I'll probably stop by that day, but by then the shelves will be bare.
 

K-Tiger

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What's mostly frustrating about this is that it didn't have to happen. While toys are a cutthroat, low-margin business, it was the interest payments on the 5B debt that took them down. Amazon and WM didn't help, but without all that debt, I assume TRU could have continued as an ongoing concern much longer. Maybe the Nu-KB will have better luck. Assuming we get one of their pop-up stores in november, I know I'll be inclined to try to do some holiday shopping there in hopes of getting one of the permanent locations.
Servicing the KKR/Bain-induced debt made making any of the changes necessary to stay competitive impossible. I don't suspect many deals will be had. I heard it's 10% off every week or so until the stores are empty. Nothing worth having will make it to 50%. Might pop in and see if they'll give me the sign by the exit door.