Toy r us in bankruptcy

[Kira]

I'm finding this thread very interesting.

I have to throw my worthless 2 cents in. I remember when TRU first started. I thought the stores were cluttered and sold nothing but garbage.

I popped in occasionally and the stores never looked any different. Plastic trash.

 

[Nickdfresh]

Originally Posted By: fdcg27
The likely end of this chain has little to do with the internet and everything to do with the crippling debt load it was saddled with in a 2005 LBO in which what had been a publicly held company was taken private.
The current uninformed buzz is that online sales are killing B&M retailers.
Many seem to forget that retail chains came and went long before the internet existed.


I agree with this. There's a Wiki site on bygone retailers. It's not just the internet, a lot went south before the advent of reliable online shopping: https://en.wikipedia.org/wiki/List_of_defunct_department_stores_of_the_United_States

 

[Garak]

Originally Posted By: madRiver
They had all sorts of retail locations they could have taken advantage of hot trends like kids and slime or legos and made play areas to drive traffic in.

You'd think they, of all places, would be able to get foot traffic in by that method alone. I'm not a parent, but I'm sure it's a great way to kill some time with the kids. I always loved the toy department when I was a kid. One would think it would be very hard to replace hands on time with toys for the kids at the store with an online experience.

 

[OneEyeJack]

Toys R Us is just working the system. They are in talks involving a buyout/exchange and one of the requirements was to seek protection until a deal can be worked out. If there's any doubt it's not the principals working out the details. Any upcoming statements will be agreed upon by all parties involved. No one is anticipating a fire sale. A very prestigious valuation (as opposed to evaluation) consultant's participation is in the mix. Stupid will carry the day.

 

[Panzerman]

Clark Howard who I trust claims that ToysRus actually was burrowing money against ToysRus for other gamble's that didn't pay off. The internet blame on Amazon was a cop out. I have to say I believe him. Toy stores are one bussiness that does good against internet along with Home Improvement stores.

 

[aquariuscsm]

I remember as a kid seeing Toys R Us commercials on TV. That giraffe always made me angry! Haha

 

[Nickdfresh]

My local Toys R Us almost always has a number of cars out front, this is a weird time to claim bankruptcy. I mean, maybe in January or February after the Xmas shopping season...

 

[hemitruck]

Originally Posted By: philipp10
People blame the leadership yet hop on the internet and go to Amazon on a regular basis. No one could save these stores....including Sears. Its an uphill battle and it will end with Amazon and Walmart and a few bit players in the end.
.


Interesting Sears couldn't survive as they started out as a catalog order business.

 

[MCompact]

Originally Posted By: aquariuscsm
As a kid all we had were mom and pop toy stores. Those blew away the [censored] chains of today.


I loved going to the toy store/hobby shop when I was a kid...

 

[DBMaster]

This is what we call capitalism. If you want vestigial business models to survive you'll have to go to another country. Best to stop pining for the past and make the best of what we have.

 

[jeepman3071]

Originally Posted By: aquariuscsm

That's awesome!! I loved those places as a kid!! My parents would take me to one and it seemed like we'd spend hours in there!

I also remember this mom and pop shop that sold nothing but electric train sets. It was an old painted green house that was transformed into a shop and had this huge sign that just said "TRAINS". I was in heaven in there as a kid!!


We had one of those types of shops in a neighboring town. It was an old brick building filled with trains. I remember going there several times as a kid. I believe they closed down a year or two ago.

 

[4WD]

That Christmas strategy had an another side too ~ when they were king of the hill that leverage was used to hoard the hot selling items and some parents felt hosed having to buy it there. In our case that meant 50 miles each way on top of it all …

 

[Crispysea]

Originally Posted By: eljefino

TRU should have a buying process where you shop online, they wrap it in brown paper, and you pick it up at an "ice cream window" facing the parking lot where kids don't even get to go inside.


I remember a chain called Service Merchandise that did pretty much that. They had a huge display case, and every item had a number. You filled out an order form, and they brought it out at a pickup window. They were mainly in the South. I think there was a similar one on the East Coast.

 

[cjcride]

Originally Posted By: Crispysea
Originally Posted By: eljefino

TRU should have a buying process where you shop online, they wrap it in brown paper, and you pick it up at an "ice cream window" facing the parking lot where kids don't even get to go inside.


I remember a chain called Service Merchandise that did pretty much that. They had a huge display case, and every item had a number. You filled out an order form, and they brought it out at a pickup window. They were mainly in the South. I think there was a similar one on the East Coast.

We had similar up here. They were Consumers Distributing and Shoprite stores.

 

[aquariuscsm]

Originally Posted By: Crispysea
Originally Posted By: eljefino

TRU should have a buying process where you shop online, they wrap it in brown paper, and you pick it up at an "ice cream window" facing the parking lot where kids don't even get to go inside.


I remember a chain called Service Merchandise that did pretty much that. They had a huge display case, and every item had a number. You filled out an order form, and they brought it out at a pickup window. They were mainly in the South. I think there was a similar one on the East Coast.


We had a Service Merchandise here in the 80s. It replaced Wilson's (which was the exact same store verbatim,just changed names). They had this killer sound room where they kept all the high end home stereo stuff.

 

[PandaBear]

Originally Posted By: Mr Nice
They have expensive prices and terrible customer service, also there stores are always messy.


This.

Out of all the places I bought stuff TRU are the one that actually acts like a mom and pop refusing to return for no reason and accusing me of greedy trying to price match. Walmart doesn't do that, Target doesn't do that. When Target ship to home free with their red card and Amazon with prime membership, why go to TRU to deal with the CS?

Most of their stores are too small and they have too many of them. If they are larger and cover more items at lower price it would survive better.

 

[PandaBear]

Originally Posted By: madRiver
My though is Toys R Us could instead of using the space to stock toys maybe actually let folks actually use the real toys instead. The retail location would be a return place, demo area and if you need item immediately you pay the extra Brick Fee(brick and mortar). The purpose is try, return, or immediate purchase(at premium) items that are ultimately delivered.

This model could be extended to clothing, shoes or really anything. Multiple online sellers could participate at try on, demo places and return places. Just carry enough stock for the purpose but greater variety.

I went to an online retailer called BackCountry.com in Salt Lake City with a "store". Nothing more then you going to normal order site with a bunch of MACs writing down with pencil no less what you wanted and after 10 mins or so a window into a massive warehouse they hand you the item.



Most of TRU profit is from Babeis R Us, that's stable and high volume. Being a display only store doesn't do much if you are competing with Target and Amazon and Walmart. You need to be all private label and cut down on the demo cost to do it efficiently.

 

[Vern_in_IL]

Originally Posted By: DBMaster
This is what we call capitalism. If you want vestigial business models to survive you'll have to go to another country. Best to stop pining for the past and make the best of what we have.


That is [censored], the United States has not been under Capitalism since the Gilded age. What we have today is Socialism.

 

[DBMaster]

Originally Posted By: Vern_in_IL
Originally Posted By: DBMaster
This is what we call capitalism. If you want vestigial business models to survive you'll have to go to another country. Best to stop pining for the past and make the best of what we have.


That is [censored], the United States has not been under Capitalism since the Gilded age. What we have today is Socialism.


Is that why Walmart and Amazon dominate retail?

 

[Vern_in_IL]

Socialism Holds American Society Together, or We're Capitalistic and Thus Failing. Look at your tax rate, say you are middle or upper middle class. Look how much of your income you pay out in taxes, regulatory fees, licensing fees, indirect taxation, State sales tax, proptery tax that they levy on and so forth. The products you buy, the businesses pay tax, licensing fees, and taxes.

Is that a capitalistic system or is that the significant amount of productivity allocated toward Socialist endeavors?

In most parts of the U.S. you pay a property tax, rent to the Government, Government owns the means of production.

Amazon? Walmart? Bribe some Senators and they will look the other way.

Socialism is a political system which systematically violates property rights. Hey, our money system, a fiat currency controlled by a quasi federal central bank in which interests rates as well as the ebb and flow of credit is being manipulated, is a socialist money system. It is a system which systematically violates property rights. I'd say that if your currency is a violation of property rights in of itself then Your living in a socialist state.