Well its official, Toys R Us declared bankruptcy yesterday -- the market was taken by surprised (no not really) the market lost its shirt (no even close, its a private company). You see Toys is a private company owned by KKR and some other private companies.
I've not been in a Toys R us for many years. Last time I was there it made Walmart look exiting. The cost cutting made it a place you didn't want to go, it was depressing, and more importantly, its key demographic were people who were already shopping at Walmart -- which it turns out has a rather nice toy section. No joke, no help, but no joke it has a good but limited selection for the discerning uncle/godfather!
Don't get me wrong, none of these stores are appealing, in fact, they are the very opposite. However, if you objective is to make the purchase as plain and painful as possible then Toys R Us is the place for you.
Owners, such as KKR, are specialist in downsizing re-structuring and making things more cost effective (look at K-mart and Sears). My point is that if the products are the same price as everywhere else (looking at you Amazon) then what's the point of feeling the pain -- and shopping at Toys?
There is no effective sales force in a Toys R Us (there was nobody on the floor last time I visited a Toys R Us -- However, there were three security guards...so there's that!), As an uncle/godfather etc buying a toy for a 5 year old or 9 year old boy is difficult. Toys R Us didn't simplify the process at all! Personally, I would rather go on Amazon, use some test website about age/gender appropriate toys and simply order what looks good. I cannot think of a single reason to drive to a Toys R Us.
In the end, the only group that will lose out in Toys R Us are the "sales associates" which don't exist and the cashier who with part time minimum wage jobs have very low expectation. I am rather confident that KKR raided the pension fund -- or at the very least didn't contribute a penny to the pension fund for years (this is not a KKR thing -- they are not worse then any corporate owners these days -- thinking of you ACE).
Toys R Us which was founded in 1957 (yep) died when its name no longer represented what it was -- Toys R Us implied that they knew toys -- not that they just stocked toys (Walmart and Amazon).
On the other hand this is only Toys' first bankruptcy -- more to come
I've not been in a Toys R us for many years. Last time I was there it made Walmart look exiting. The cost cutting made it a place you didn't want to go, it was depressing, and more importantly, its key demographic were people who were already shopping at Walmart -- which it turns out has a rather nice toy section. No joke, no help, but no joke it has a good but limited selection for the discerning uncle/godfather!
Don't get me wrong, none of these stores are appealing, in fact, they are the very opposite. However, if you objective is to make the purchase as plain and painful as possible then Toys R Us is the place for you.
Owners, such as KKR, are specialist in downsizing re-structuring and making things more cost effective (look at K-mart and Sears). My point is that if the products are the same price as everywhere else (looking at you Amazon) then what's the point of feeling the pain -- and shopping at Toys?
There is no effective sales force in a Toys R Us (there was nobody on the floor last time I visited a Toys R Us -- However, there were three security guards...so there's that!), As an uncle/godfather etc buying a toy for a 5 year old or 9 year old boy is difficult. Toys R Us didn't simplify the process at all! Personally, I would rather go on Amazon, use some test website about age/gender appropriate toys and simply order what looks good. I cannot think of a single reason to drive to a Toys R Us.
In the end, the only group that will lose out in Toys R Us are the "sales associates" which don't exist and the cashier who with part time minimum wage jobs have very low expectation. I am rather confident that KKR raided the pension fund -- or at the very least didn't contribute a penny to the pension fund for years (this is not a KKR thing -- they are not worse then any corporate owners these days -- thinking of you ACE).
Toys R Us which was founded in 1957 (yep) died when its name no longer represented what it was -- Toys R Us implied that they knew toys -- not that they just stocked toys (Walmart and Amazon).
On the other hand this is only Toys' first bankruptcy -- more to come
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