Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th


Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. In its heyday in th
Toys R Us built a kingdom and the world’s biggest toy store. Then, they lost it. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


Toys R Us built a kingdom and the world's biggest toy store. Then, they lost it.

The toy emporium that Charles P. Lazarus envisioned has been reduced to dusty floors and empty shelves.

Much has been said about the demise of the toy empire, which this week announced its plan to liquidate. There have been fingers pointed at corporate raiders, Amazon and big-box stores. All contributed to its undoing.

Ultimately, though, Toys R Us’ collapse is a story of loyalty run dry. The store in its early days fostered devotion from customers and toymakers. In the end, it lost hold on both.

Toys R Us’ status as the most important toy store in town left it cavalier, if cocky at times, according to conversations with former employees, executives and industry insiders, who spoke to CNBC on the condition of anonymity. It didn’t invest in its stores, even as it was adding to the fleet, leaving it vulnerable when new competition moved in.

The story begins with Lazarus, the store’s visionary who wanted the “R” written backward — an ode to childlike scrawl. Lazarus, who has been described as one of the great merchants of his time, expanded a baby furniture store he owned into a toy store. By 1978, he had created a toy superstore large enough to become a public company.

In its heyday in the 1980s and 1990s, it was the most important toy store in the country, if not the world. Its strength grew as competitors Kiddie City and Child World went out of business.


Company: cnbc, Activity: cnbc, Date: 2019-01-26  Authors: lauren hirsch, eduardo munoz, jacques m chenet, corbis, getty images, scott mlyn, peter foley, bloomberg, jason alden
Keywords: news, cnbc, companies, written, toy, biggest, toys, worlds, built, went, store, lost, stores, lazarus, world, week, kingdom, important


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Hundreds of Target stores are getting a makeover in the toy aisles ahead of the holidays

The retailer said it will make a handful of major changes within the toy category, including devoting more aisles to selling toys and hosting play days in stores. Like many retailers, including Amazon and Walmart, Target is hoping to take advantage of the share of the toy market that is now up for grabs. First, Target said it plans to add a quarter-million square feet of space dedicated to toys across more than 500 stores by Nov. 2. Online, Target promises to make it easier for customers to sear


The retailer said it will make a handful of major changes within the toy category, including devoting more aisles to selling toys and hosting play days in stores. Like many retailers, including Amazon and Walmart, Target is hoping to take advantage of the share of the toy market that is now up for grabs. First, Target said it plans to add a quarter-million square feet of space dedicated to toys across more than 500 stores by Nov. 2. Online, Target promises to make it easier for customers to sear
Hundreds of Target stores are getting a makeover in the toy aisles ahead of the holidays Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: laura galligan, lauren thomas, target ramps up toy department in time for the hol
Keywords: news, cnbc, companies, stores, holidays, getting, ahead, plans, space, toy, walmart, shopping, aisles, hundreds, including, toys, makeover, target, company


Hundreds of Target stores are getting a makeover in the toy aisles ahead of the holidays

Target on Tuesday announced its plans to roll out a new toy experience in stores and online just in time for the holiday season and ahead of the first Christmas since Toys R Us liquidated its business.

The retailer said it will make a handful of major changes within the toy category, including devoting more aisles to selling toys and hosting play days in stores. Like many retailers, including Amazon and Walmart, Target is hoping to take advantage of the share of the toy market that is now up for grabs.

First, Target said it plans to add a quarter-million square feet of space dedicated to toys across more than 500 stores by Nov. 2. The company said the extra space will be “absolutely permanent,” lasting beyond the gifting season.

Target will give a fuller remodel to 100 stores, which will allow those locations to showcase larger items, including electric ride-on vehicles, playhouses and outdoor play sets, the company said. Within those aisles, the company will also have more than 2,500 “new and exclusive” toys for sale — nearly double what it offered in 2017.

Then, Target will also host 25,000 “hours of joy” events across stores later this year, allowing kids to test out the latest toys and meet fictional characters. The goal for bricks-and-mortar companies this holiday season is to make shopping more experiential, giving people a reason to come inside rather than shopping for merchandise online. Walmart similarly plans to host events in stores for kids.

Online, Target promises to make it easier for customers to search for “the perfect toys for every kid on their list.”

Target said it will release 22 million gifting catalogs in homes and stores, featuring 15 percent more toy pages compared with last year. Customers will be able to scan items from the catalog using Target’s mobile app, where they can find more information about the product and easily add the item to their cart, the company said.


Company: cnbc, Activity: cnbc, Date: 2018-10-16  Authors: laura galligan, lauren thomas, target ramps up toy department in time for the hol
Keywords: news, cnbc, companies, stores, holidays, getting, ahead, plans, space, toy, walmart, shopping, aisles, hundreds, including, toys, makeover, target, company


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Mattress Firm is the latest retailer to go bankrupt. Here are others that went bust this year.

The pace is slower than last year, when more than 20 retailers including Toys R Us, Hhgregg, and Gymboree filed for bankruptcy protection. On Friday, Mattress Firm became the latest company to head down this path, as the largest mattress retailer in the U.S. grapples with how to trim its footprint of more than 3,000 stores. Toys R Us, meanwhile, could see another day. Its bankruptcy auction was recently put off as a group of hedge funds is considering reviving the business, bidding for the Toys


The pace is slower than last year, when more than 20 retailers including Toys R Us, Hhgregg, and Gymboree filed for bankruptcy protection. On Friday, Mattress Firm became the latest company to head down this path, as the largest mattress retailer in the U.S. grapples with how to trim its footprint of more than 3,000 stores. Toys R Us, meanwhile, could see another day. Its bankruptcy auction was recently put off as a group of hedge funds is considering reviving the business, bidding for the Toys
Mattress Firm is the latest retailer to go bankrupt. Here are others that went bust this year. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: lauren thomas, john ewing, portland press herald, getty images, michael brochstein, sopa images, lightrocket, source, google earth, konrad fiedler
Keywords: news, cnbc, companies, bust, retailers, went, bankrupt, company, mattress, firm, protection, stores, latest, toys, bankruptcy, filed, retailer


Mattress Firm is the latest retailer to go bankrupt. Here are others that went bust this year.

Nearly a dozen retailers — including department store chains and shoe brands — have filed for bankruptcy protection so far this year, shuttering many of their stores — if not all of them.

The pace is slower than last year, when more than 20 retailers including Toys R Us, Hhgregg, and Gymboree filed for bankruptcy protection. But it’s no less painful for the employees and landlords who find themselves stuck in the middle as the retail landscape continues to evolve.

On Friday, Mattress Firm became the latest company to head down this path, as the largest mattress retailer in the U.S. grapples with how to trim its footprint of more than 3,000 stores. It’s initially planning to close as many as 700 locations, with roughly 200 stores expected to go dark as soon as “the next few days.” The company, owned by Steinhoff International Holdings, said it expects to complete a prepackaged restructuring within 45 to 60 days.

The closures by Mattress Firm, Toys R Us and other bankrupt brands are only adding to the glut of retail real estate that sits vacant across the U.S.

A new report from real-estate research firm Reis, released earlier this week, said U.S. mall vacancy rates climbed to 9.1 percent during the third quarter, their highest level in seven years. The group said closures from Bon-Ton and Sears Holdings accounted for much of the jump in empty storefronts. Sears, having already shuttered hundreds of locations, has a large debt payment hanging over its head due Oct. 15, which could push the company into bankruptcy if it doesn’t find a solution to restructure the business.

Toys R Us, meanwhile, could see another day. Its bankruptcy auction was recently put off as a group of hedge funds is considering reviving the business, bidding for the Toys R Us and Babies R Us brand names.

According to a list compiled by Moody’s, retailers at risk of defaulting on loan payments — and therefore could be forced to file for bankruptcy — include 99 Cent Only Stores, Charlotte Russe, Guitar Center and Payless ShoeSource, which once filed for bankruptcy protection but later emerged after closing more than 600 stores. Below is the list of retailers that have filed for bankruptcy protection so far this year, some of which have already managed to emerge.


Company: cnbc, Activity: cnbc, Date: 2018-10-05  Authors: lauren thomas, john ewing, portland press herald, getty images, michael brochstein, sopa images, lightrocket, source, google earth, konrad fiedler
Keywords: news, cnbc, companies, bust, retailers, went, bankrupt, company, mattress, firm, protection, stores, latest, toys, bankruptcy, filed, retailer


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Toys ‘R’ Us lenders plan to revive brand

The top lenders of Toys ‘R’ Us have decided to cancel the bankruptcy auction of its brand name and other intellectual property assets and instead plan to revive the Toys ‘R’ Us and Babies ‘R’ Us brand names, a court filing on Monday showed. The bankrupt retailer’s debtors aim to open a new Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest and develop new retail shops. The lenders also plan to expand its international presence and furt


The top lenders of Toys ‘R’ Us have decided to cancel the bankruptcy auction of its brand name and other intellectual property assets and instead plan to revive the Toys ‘R’ Us and Babies ‘R’ Us brand names, a court filing on Monday showed. The bankrupt retailer’s debtors aim to open a new Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest and develop new retail shops. The lenders also plan to expand its international presence and furt
Toys ‘R’ Us lenders plan to revive brand Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-03
Keywords: news, cnbc, companies, revive, assets, sell, brand, property, babies, toys, company, lenders, plan


Toys 'R' Us lenders plan to revive brand

The top lenders of Toys ‘R’ Us have decided to cancel the bankruptcy auction of its brand name and other intellectual property assets and instead plan to revive the Toys ‘R’ Us and Babies ‘R’ Us brand names, a court filing on Monday showed.

The bankrupt retailer’s debtors aim to open a new Toys ‘R’ Us and Babies ‘R’ Us branding company that maintains existing global license agreements and can invest and develop new retail shops.

The lenders also plan to expand its international presence and further develop its private brands business.

The bids were not superior to the plan to revive the brand as it did not offer “probable economic recovery” to creditors as well as benefits to stakeholders who would maintain the brands under the new independent U.S. business, the court filing showed.

Toys “R” Us filed for Chapter 11 bankruptcy protection in September last year, hoping to restructure some $5 billion in debt, much of which stemmed from a $6.6 billion leveraged buyout by private equity firms in 2005.

But the company changed course in March, saying it would sell its operations in Canada, Asia and Europe, and shut down in the United States.

Under the intellectual property auction, the company had planned to sell its assets, including the brand names of Toys ‘R’ Us, Babies ‘R’ Us, registry lists, website domains, Geoffrey the Giraffe and other assets.


Company: cnbc, Activity: cnbc, Date: 2018-10-03
Keywords: news, cnbc, companies, revive, assets, sell, brand, property, babies, toys, company, lenders, plan


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Michaels expands kids’ crafting section in bid to win sales left behind by Toys R Us

Toys R Us had accounted for about 15 to 20 percent of all U.S. toy sales last year. Many companies, including Walmart, have already laid out strategies to capture those sales — even retailers that aren’t typically known for their toy sales. Sales in the segment Michaels is focusing on — arts and craft toys — were up 8 percent between January and July, according NPD Group. But as the trend grew more popular, companies rushed in with their own slime craft kits, bumping up sales of the category. Ru


Toys R Us had accounted for about 15 to 20 percent of all U.S. toy sales last year. Many companies, including Walmart, have already laid out strategies to capture those sales — even retailers that aren’t typically known for their toy sales. Sales in the segment Michaels is focusing on — arts and craft toys — were up 8 percent between January and July, according NPD Group. But as the trend grew more popular, companies rushed in with their own slime craft kits, bumping up sales of the category. Ru
Michaels expands kids’ crafting section in bid to win sales left behind by Toys R Us Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-27  Authors: sarah whitten, scott mcintyre, bloomberg, getty images, eduardo munoz
Keywords: news, cnbc, companies, win, crafting, sales, slime, left, retailers, stores, expands, michaels, toys, toy, kids, kits, craft, bid


Michaels expands kids' crafting section in bid to win sales left behind by Toys R Us

Arts and craft supplier Michaels is entering the land grab for Toys R Us’ market share.

Hundreds of stores went dark earlier this year when Toys R Us liquidated, leaving a window for other retailers to step in and court the toy retailer’s former customers. Toys R Us had accounted for about 15 to 20 percent of all U.S. toy sales last year. Many companies, including Walmart, have already laid out strategies to capture those sales — even retailers that aren’t typically known for their toy sales.

Michaels, which has seen its stock drop more than 30 percent this year to a multiyear low, is hoping to entice parents of young crafters, builders and burgeoning artists with a robust selection of nonelectronic products and crafting materials. The company is making some major changes to the kids’ sections of its stores, including stocking the aisles with more than 600 new items and partnering with brands to get exclusive access to some products.

“We call it creative play,” CEO Chuck Rubin told CNBC. “It’s kind of a variation of the toy market.”

For Michaels, it’s all about kids making their own projects — think jewelry-making kits, clay and painting supplies. If the store stocks a product with a licensed brands like “Star Wars” or “My Little Pony,” kids usually have to assemble the item before they can play with it. They’ve added Legos. Typically, the only items that run on batteries are part of its S.T.E.M. selection. These products foster skills in science, technology, engineering and mathematics and include robotics kits, circuit builders and coding toys.

Sales in the segment Michaels is focusing on — arts and craft toys — were up 8 percent between January and July, according NPD Group. This spike in sales is largely due to the dollar growth of craft kits, which were up 13 percent. In the same time period last year, sales of these craft kits were down 11 percent mostly due to the increased popularity of slime products.

Slime enthusiasts initially had to buy all of their ingredients separately for their projects. But as the trend grew more popular, companies rushed in with their own slime craft kits, bumping up sales of the category.

Rubin said slime continues to be popular, and Michaels carries slime kits and individual materials.

In addition, Michaels has lined up a number of products that can’t be found at any other retailers. This is a common tactic among toy sellers around the holiday season. Offering unique items can draw more people into stores, who often shop for other things while they are there.

Michaels is adjusting store layouts to more clearly define where shoppers can find products for kids, and its website will make it easier to shop for kid-friendly crafts. The retailer will continue to hold crafting events in its stores to lure parents and children. Last year, the company hosted more than 120 such events and had more than 1 million kids participate.

That should help set Michaels apart from others trying to get a bigger share of holiday sales. For example, Party City — not a traditional toy retailer — is opening 50 Toy City stores for the holidays, which will sit alongside its Halloween pop-up shops. The company also said it plans to permanently add more toys to its Party City locations.

Kohl’s, Five Below and J.C. Penney are just a few other businesses that have already said they plan to sell more toys this year.

Holiday sales in the U.S. are projected to be strong this year. Deloitte, for example, estimates sales will rise 5 to 5.6 percent this year, helped by a strong economy and low unemployment. If Michaels can grab a bigger share, it will provide a much-needed boost. In its latest quarter, sales at stores open at least 12 months fell 0.4 percent.

“We are very focused on kids, it is one of our core categories,” Rubin said. “It’s not so much of a toy business, but we think given the strength that we have in [the category] and the dislocation of the market, there is a nice piece of the business we can pick up.”

WATCH: The rise and fall of Toys R Us


Company: cnbc, Activity: cnbc, Date: 2018-09-27  Authors: sarah whitten, scott mcintyre, bloomberg, getty images, eduardo munoz
Keywords: news, cnbc, companies, win, crafting, sales, slime, left, retailers, stores, expands, michaels, toys, toy, kids, kits, craft, bid


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Toys R Us nostalgia may not be enough to fuel toy sales this holiday season

Nostalgia over the loss of Toys R Us may have boosted toy sales in the beginning of the year, but it might not be enough to fuel holiday sales. Kocharyan said that toy sales in July and August were down in the high-single digits, with September continuing that downward trend. Hasbro’s Nerf division, one of its best performing brands, has fallen more than 30 percent year-over-year, as 20 percent of Nerf’s toys were once sold in Toys R Us shops. For Mattel, “Cars 3” toy sales slumped between 40 to


Nostalgia over the loss of Toys R Us may have boosted toy sales in the beginning of the year, but it might not be enough to fuel holiday sales. Kocharyan said that toy sales in July and August were down in the high-single digits, with September continuing that downward trend. Hasbro’s Nerf division, one of its best performing brands, has fallen more than 30 percent year-over-year, as 20 percent of Nerf’s toys were once sold in Toys R Us shops. For Mattel, “Cars 3” toy sales slumped between 40 to
Toys R Us nostalgia may not be enough to fuel toy sales this holiday season Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-20  Authors: sarah whitten, source
Keywords: news, cnbc, companies, toys, mattels, season, fuel, retailers, toy, locations, kocharyan, nostalgia, space, stores, sales, holiday


Toys R Us nostalgia may not be enough to fuel toy sales this holiday season

Nostalgia over the loss of Toys R Us may have boosted toy sales in the beginning of the year, but it might not be enough to fuel holiday sales.

While there was renewed optimism about the state of the toy industry after a 7 percent jump in sales from January to June, UBS analyst Arpine Kocharyan is skeptical the trend will endure.

Kocharyan said that toy sales in July and August were down in the high-single digits, with September continuing that downward trend.

The slump so far in September could be a bad sign because parents often begin to stash away toys for the holidays, especially if they think an item could be a hot seller or if they are on a tight budget. It will be important to see if sales pick up in October.

Hasbro’s Nerf division, one of its best performing brands, has fallen more than 30 percent year-over-year, as 20 percent of Nerf’s toys were once sold in Toys R Us shops. Hasbro’s “Star Wars” division also saw a drop off as it faced tough comparisons with last year’s Force Friday merchandise push.

For Mattel, “Cars 3” toy sales slumped between 40 to 60 percent, a typical falloff in the year after a movie premiere. While sales of Barbie and Hot Wheels are doing better, the rest of Mattel’s portfolio is down more than double-digits heading into the third quarter, Kocharyan said.

These toymakers have been trying to make up for the space they lost at Toys R Us by getting big box retailers to expand shelf-space for toys and by selling products to non-traditional stores like grocers and pharmacies.

Walmart is one retailer that said it is expanding its assortment of toys by 30 percent at all of its brick-and-mortar locations this holiday season. It will also be adding more physical space to its toy section in some locations using space allotted for seasonal goods, like back-to-school merchandise.

However, some retailers are hesitant to take on too much inventory in the fear that unsold toys will sit on shelves well into spring 2019. While specialty toy stores can afford to have extra goods post-Christmas, mass-market merchants can’t.

Even Amazon could face some issues come December. Kocharyan said that while Amazon is expected to grab market share in the toy industry, it’s still viewed as a place to find specific items, not to browse by brand or category.

Shares of Hasbro are up more than 17 percent since January, while Mattel’s stock is up about 8 percent.


Company: cnbc, Activity: cnbc, Date: 2018-09-20  Authors: sarah whitten, source
Keywords: news, cnbc, companies, toys, mattels, season, fuel, retailers, toy, locations, kocharyan, nostalgia, space, stores, sales, holiday


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Big winners after Toys R Us’ death are still Walmart and Target, but also Costco

They surveyed more than 50,000 people who had shopped Toys R Us in July of last year and then shopped another retailer after Toys R Us’ stores were all closed, in July 2018, noting where those people chose to go otherwise. Walmart has been the biggest winner so far and captured 26 percent of lost Toys R Us traffic, Gordon Haskett said in a research note. Target got 14 percent, while dollar stores including Dollar General and Dollar Tree captured 10 percent, and Costco 8 percent. Together, those


They surveyed more than 50,000 people who had shopped Toys R Us in July of last year and then shopped another retailer after Toys R Us’ stores were all closed, in July 2018, noting where those people chose to go otherwise. Walmart has been the biggest winner so far and captured 26 percent of lost Toys R Us traffic, Gordon Haskett said in a research note. Target got 14 percent, while dollar stores including Dollar General and Dollar Tree captured 10 percent, and Costco 8 percent. Together, those
Big winners after Toys R Us’ death are still Walmart and Target, but also Costco Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-13  Authors: lauren thomas, getty images
Keywords: news, cnbc, companies, death, shoppers, haskett, retailers, costco, traffic, toys, walmart, winners, toy, big, dollar, target, stores


Big winners after Toys R Us' death are still Walmart and Target, but also Costco

Retailers are scrambling to fill the void left behind by Toys R Us by convincing shoppers their stores are the go-to place to find toys this holiday season.

The biggest winners so far appear to be Walmart and Target, according to a study by Gordon Haskett Research Advisors in partnership with data provider Alpha Hat. They surveyed more than 50,000 people who had shopped Toys R Us in July of last year and then shopped another retailer after Toys R Us’ stores were all closed, in July 2018, noting where those people chose to go otherwise.

Walmart has been the biggest winner so far and captured 26 percent of lost Toys R Us traffic, Gordon Haskett said in a research note. Target got 14 percent, while dollar stores including Dollar General and Dollar Tree captured 10 percent, and Costco 8 percent.

Together, those three retailers and the category “dollar stores” captured roughly 58 percent of traffic that used to funnel to Toys R Us stores. To other retail analysts, this should offer a good picture of where consumers are planning to head this holiday season.

“Recent commentary from retailers suggest that companies will be shifting spend to increase their respective toy offerings and/or augment the presentation of products in light of over $1.0 billion of share up for grabs post the Toys R’ Us closings earlier this summer,” Gordon Haskett analyst Chuck Grom said.

While Costco isn’t typically known for having a large toy selection, the study said the company saw the biggest increase — even more than Walmart — year-over-year in traffic from shoppers who used to go to Toys R Us but now go to the wholesaler. It had 18 percent more visits this past July than it did a year prior from former Toys R Us shoppers. Costco could talk more about the holidays when it reports earnings on Oct. 4.

Walmart has already said it will have 30 percent more toys in stores later this year. Target said it will roll out more than 2,500 new and exclusive toys in the coming months.

Kohl’s has said it will bring in new brands FAO Schwartz and Lego ahead of the holidays, while J.C. Penney has also promised to bulk up its toy assortment, particularly items for babies, trying to capture market share left behind from Babies R Us.


Company: cnbc, Activity: cnbc, Date: 2018-09-13  Authors: lauren thomas, getty images
Keywords: news, cnbc, companies, death, shoppers, haskett, retailers, costco, traffic, toys, walmart, winners, toy, big, dollar, target, stores


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Walmart will have 30% more toys in stores this holiday season

Walmart said Thursday it is expanding its assortment of toys by 30 percent at all brick-and-mortar locations this holiday season, and it will offer 40 percent more toys on Walmart.com. Party City — not a traditional toy retailer — is opening 50 Toy City stores this holiday season, which will sit alongside its Halloween pop-up shops. Target has meanwhile said it plans to push more toys this holiday season. Some analysts have predicted Target will be the biggest winner following the death of Toys


Walmart said Thursday it is expanding its assortment of toys by 30 percent at all brick-and-mortar locations this holiday season, and it will offer 40 percent more toys on Walmart.com. Party City — not a traditional toy retailer — is opening 50 Toy City stores this holiday season, which will sit alongside its Halloween pop-up shops. Target has meanwhile said it plans to push more toys this holiday season. Some analysts have predicted Target will be the biggest winner following the death of Toys
Walmart will have 30% more toys in stores this holiday season Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-30  Authors: lauren thomas, sarah whitten, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, walmart, market, holiday, stores, 30, toys, share, toy, season, sales


Walmart will have 30% more toys in stores this holiday season

It’s a land grab for Toys R Us market share.

Walmart said Thursday it is expanding its assortment of toys by 30 percent at all brick-and-mortar locations this holiday season, and it will offer 40 percent more toys on Walmart.com. At some locations, the physical space dedicated to toys also will be larger, Walmart said Thursday at a briefing with the media in New York. In those locations, Walmart will shift space allotted for seasonal goods, like back-to-school merchandise, to toys.

Walmart’s goal is to “show customers the best place to shop for toys is Walmart,” said Anne Marie Kehoe, the vice president of the retailer’s U.S. toy business.

The aggressive push comes after hundreds of Toys R Us stores were shuttered earlier this year, leaving a window for other retailers to step in and take market share. Last year, toy sales rose 1 percent to $20.7 billion from 2016, according to market researcher NPD Group. Sales in the first half of 2018 jumped 7 percent to $7.9 billion, NPD said.

Many companies, including Walmart, have already laid out strategies to do just that — even companies that aren’t typically known for their toy sales. Party City — not a traditional toy retailer — is opening 50 Toy City stores this holiday season, which will sit alongside its Halloween pop-up shops. The company also said it plans to permanently add more toys to its Party City locations.

Kohl’s, Five Below and J.C. Penney are just a few other businesses that have already said they plan to sell more toys this year.

“We continue to see Amazon as the biggest share taker post-[Toys R Us],” Jefferies analyst Stephanie Wissink said in a research note. The e-commerce giant accounted for a high-teens percentage of U.S. toy sales in 2017, she said.

Amazon has already jumped in, releasing its top toy list this week — 10 days earlier than it did last year. It also is expected to soon start handing out holiday toy catalogs at Whole Foods grocery stores and sending them to Prime households, marketing its expanded assortment in a way that it’s never done before.

Wissink also said she wouldn’t be surprised to see Amazon “send catalogs to non-Prime households offering free 60 day Prime trials during Nov.-Dec.,” to grow Amazon’s share of the toy market further this holiday season.

In March, Wissink said that Toys R Us had accounted for about 15 to 20 percent of all U.S. toy sales last year.

Target has meanwhile said it plans to push more toys this holiday season. Some analysts have predicted Target will be the biggest winner following the death of Toys R Us, considering many Toys R Us stores were located close to Target stores.

“We are investing in categories like toy and baby where we know we have this big opportunity ahead of us,” Target CEO Brian Cornell told CNBC after the retailer reported quarterly earnings last week. “We are going to make sure we are taking more than our fair share of that market share.”

Kohl’s also mentioned its opportunity in toys, during its earnings conference call last week.

“While we’re not the biggest player in toy, we have a bit of a curated assortment,” Kohl’s CEO Michelle Gass said. “We’re bringing in two powerful brands this holiday, Lego and FAO Schwarz, so that will give us a real boost to our toy business.”

Back at Walmart, the company said Thursday it plans to hold more than 2,000 “retail-tainment” events in its stores this year — up from less than 500 last year — to promote new toys. On Sept. 8, Walmart will host a National Play Day in more than 1,500 of its stores to give kids the chance to play with some of its top toys for 2018.

Walmart’s layaway service for the holiday season will start this Friday, earlier than it did last year.


Company: cnbc, Activity: cnbc, Date: 2018-08-30  Authors: lauren thomas, sarah whitten, patrick t fallon, bloomberg, getty images
Keywords: news, cnbc, companies, walmart, market, holiday, stores, 30, toys, share, toy, season, sales


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Target races to fill toy void left by rival

“We’re picking up sales that would have gone to Babies R Us and Toys R Us. “We are going to make sure we are taking more than our fair share of that market share.” In February, several Target Corp. investors told Reuters they think the company should take a step back from trying to boost its toy sales. Beyond simply gaining market share from Toys R Us, Target expressed interest earlier this year in the company’s real estate. Back in March, the company bid on a former Toys R Us location in Kendal


“We’re picking up sales that would have gone to Babies R Us and Toys R Us. “We are going to make sure we are taking more than our fair share of that market share.” In February, several Target Corp. investors told Reuters they think the company should take a step back from trying to boost its toy sales. Beyond simply gaining market share from Toys R Us, Target expressed interest earlier this year in the company’s real estate. Back in March, the company bid on a former Toys R Us location in Kendal
Target races to fill toy void left by rival Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-23  Authors: alex van abbema, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, races, sales, share, target, void, babies, toys, market, rival, stores, baby, toy, left


Target races to fill toy void left by rival

Fresh off one of its best quarters in years, Target Corp. wants to step up its toy game ahead of the holiday season — its first without Toys R Us as a competitor.

All remaining Toys R Us and Babies R Us stores shut down earlier this summer after the New Jersey-based retailer declared bankruptcy, creating an opportunity for other retailers in the kids-merchandise space. Target (NYSE: TGT) was a clear beneficiary: Sales of baby clothing and shoes rose nearly 20 percent in the most recent quarter. Hardlines — a category that includes toys — saw high-single-digit comparable growth.

“We’re picking up sales that would have gone to Babies R Us and Toys R Us. … We’re certainly benefitting from new toy buyers, baby buyers that are coming to Target more frequently.” said Target CEO Brian Cornell on a media call following its second-quarter earnings announcement.

More from Minneapolis/St.Paul Business Journal:

Target had a booming quarter, with best sales growth since 2005

Pfizer will promote Mayo-developed colon cancer test Cologuard

Raymond Group buys downtown St. Paul site for hotel

When Toys R Us and Babies R Us went belly up, it meant the closure of nearly 800 stores throughout the country. In a report released in March, Seth Sigman, an analyst with Credit Suisse, concluded that 90 percent of Toys R Us stores and 96 percent of Babies R Us stores had a Target within five miles.

Cornell said Target is well-positioned to take market share in this category, and is increasing inventory now to prepare for a surge that is already showing up in stores.

“We are investing in categories like toy and baby where we know we have this big opportunity ahead of us,” Cornell said in an interview with CNBC. “We are going to make sure we are taking more than our fair share of that market share.”

Baby products have been one of Cornell’s key areas of focus since taking over in 2015, as Target has revamped its product lineup in areas such as baby goods, furniture and fashion.

But not everyone is sold on a toy-focused Target.

In February, several Target Corp. investors told Reuters they think the company should take a step back from trying to boost its toy sales. Four investors told Reuters that putting capital towards the toy category would be a waste as the retailer competes against a growing threat from Amazon.com.

Brian Yarbrough, a senior analyst with St. Louis-based Edward Jones, warns that toys can be a lower margin business — and a competitive one, as other retailers like Walmart and Kohl’s put significant investments in their toy offerings. However, he believes that Target’s toy momentum will likely continue into the holiday season, through this time next year.

“The hope is that these customers will be new to Target, and this will get them to shop at other categories,” Yarbrough said.

Beyond simply gaining market share from Toys R Us, Target expressed interest earlier this year in the company’s real estate. Back in March, the company bid on a former Toys R Us location in Kendall, Fla.


Company: cnbc, Activity: cnbc, Date: 2018-08-23  Authors: alex van abbema, david paul morris, bloomberg, getty images
Keywords: news, cnbc, companies, races, sales, share, target, void, babies, toys, market, rival, stores, baby, toy, left


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Buy Target shares before earnings due to its likely ‘solid’ results: Baird

Target shares will rise as the discount retailer benefits from the closure of Toys R Us stores, according to Baird. The firm reiterated its outperform rating for Target’s stock, predicting the retailer will report sales above expectations in the second half of this year. “We expect solid 2Q results, reflecting continued traction from top-line initiatives, the onset of seasonal sales, and a favorable calendar shift,” analyst Peter Benedict said in a note to clients Wednesday. “We see Target as a


Target shares will rise as the discount retailer benefits from the closure of Toys R Us stores, according to Baird. The firm reiterated its outperform rating for Target’s stock, predicting the retailer will report sales above expectations in the second half of this year. “We expect solid 2Q results, reflecting continued traction from top-line initiatives, the onset of seasonal sales, and a favorable calendar shift,” analyst Peter Benedict said in a note to clients Wednesday. “We see Target as a
Buy Target shares before earnings due to its likely ‘solid’ results: Baird Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-09  Authors: tae kim, justin sullivan, getty images, jim mcisaac, source, john phelan, wikimedia commons, mark neuling, seokyong lee, bloomberg
Keywords: news, cnbc, companies, yearwe, likely, baird, target, toys, solid, results, upside, topline, told, sales, retailer, buy, shares, traction, earnings


Buy Target shares before earnings due to its likely 'solid' results: Baird

Target shares will rise as the discount retailer benefits from the closure of Toys R Us stores, according to Baird.

The firm reiterated its outperform rating for Target’s stock, predicting the retailer will report sales above expectations in the second half of this year.

“We expect solid 2Q results, reflecting continued traction from top-line initiatives, the onset of seasonal sales, and a favorable calendar shift,” analyst Peter Benedict said in a note to clients Wednesday. “We see Target as a primary beneficiary from the demise of Toys ‘R Us. … All told, we see upside to Street comp estimates across 2H.”


Company: cnbc, Activity: cnbc, Date: 2018-08-09  Authors: tae kim, justin sullivan, getty images, jim mcisaac, source, john phelan, wikimedia commons, mark neuling, seokyong lee, bloomberg
Keywords: news, cnbc, companies, yearwe, likely, baird, target, toys, solid, results, upside, topline, told, sales, retailer, buy, shares, traction, earnings


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post