Soon after The LEGO Group announced a drop in revenue and the need to layoff 1400 works, Toys R Us filed for bankruptcy. While I am not surprised by this news, I am saddened for sure. Toys R Us is the last dedicated toy store in the country. I have many fond memories of visiting Toys R Us with mom when I was a child, just looking at all the toys on the shelves in awe.
Who Shops At Toys R Us?
Today, Toys R Us is known for it’s ridiculously high prices, especially on LEGO. LEGO sets routinely run 20-30% over MSRP. I think this pricing strategy has forced most Toys R Us shoppers to look for cheaper alternatives like Target, Walmart, and Amazon. I only go to Toys R Us when I hear about current clearance sales. I think the only people who shop here regularly are older customers like my mom who does it out of habit, or because they have not embraced technology.
Was Toys R Us Always Like This?
I wonder if it was always like this? Were their prices always super high? I honestly don’t remember. I always remember them having a huge selection of anything I was looking for, but I don’t remember prices. As I read more and more about this bankruptcy, I was shocked to learn Toys R Us is operating under five billion dollars of debt. That’s incredible. I wonder what the value of their accumulated inventory is in comparison.
Head over to the Washington Post to read more.
What are your thoughts on the financial woes of Toys R Us and The LEGO Group?
I am an Adult Fan of LEGO (AFOL) and an active member of the Michigan LEGO User Group (MichLUG). I have loved LEGO for as long as I can remember. I am currently working on the following models:
– UCS Millenium Falcon
– Emmett’s Apartment Building
– Gringott’s Bank