KB Toys returning

[Slirith]

Hope it turns out well for them

https://www.linkedin.com/pulse/kb-to...f/?published=t
https://nypost.com/2018/03/19/kb-toy...-of-toys-r-us/

[vindicatorx]

Seems like a poor idea with Toys R Us going out of business.

[Aurrora]

Seems like a poor idea with Toys R Us going out of business.

Why? A huge market just opened up for them.

Let’s hope they learned from KB’s mistakes of the past, you can’t compete if you’re marking everything up by 10-20%.

[Dacien]

KB Toys was part of my childhood, just like Toys R Us was. Used to go there just to play Sonic Spinball on the demo consoles they set up.

I hope the best for them, but I wonder how promising the brick and mortar toy market looks these days.

[kail]

Seems like a poor idea with Toys R Us going out of business.

It could work out tbh. People seem to be in a somewhat shock of Toys R Us' demise from what I've seen. KB Toys could fill that void without the massive investment needed compared to Toys R Us. Having just mall stores should be money printing during the holiday season.

[Tech614]

Seems like a poor idea with Toys R Us going out of business.

Toys R Us didn't go out of business due to lack of market. They went under because of poor decisions that led to a bailout more then a decade ago that they have never been able to pay back.

In fact, Toys R Us is the one that put KB out of business in the first place. KBs where typically in malls with marked up prices, they couldn't compete with TRU pricing, nor did they have the money to buy exclusives like TRU did.

[vindicatorx]

Why? A huge market just opened up for them.

Let’s hope they learned from KB’s mistakes of the past, you can’t compete if you’re marking everything up by 10-20%.

Well for starters seeing they nearly went completely under and now their long standing rival has gone under it doesn't take a lot of market knowledge to see that the demand for them is simply not there. Physical stores are on there way out for a lot of things.

[Tech614]

Well for starters seeing they nearly went completely under and now their long standing rival has gone under it doesn't take a lot of market knowledge to see that the demand for them is simply not there. Physical stores are on there way out for a lot of things.

There wasn't a lack of market. TRU accounted for 12% of all toy sales in the US. That is a massive fucking market. Please educate yourself on why they went under before trying to comment on it.

[Torrasque]

Unless they make a strong, and I mean very strong, online market presence it will fail like Toys R Us is. Overall, I do not believe they will, and it will simply fail.

[Doctor Amadeus]

Got to strike while the iron is hot.

[Torrasque]

There wasn't a lack of market. TRU accounted for 12% of all toy sales in the US. That is a massive fucking market. Please educate yourself on why they went under before trying to comment on it.

The reason is accountable to KB Toys as well, unless they are not planning on utilizing archaic market strategies. They will be competing with massive internet behemoths. It is a foolhardy venture to attempt, let allow invest in.

[vindicatorx]

Toys R Us didn't go out of business due to lack of market. They went under because of poor decisions that led to a bailout more then a decade ago that they have never been able to pay back.

In fact, Toys R Us is the one that put KB out of business in the first place. KBs where typically in malls with marked up prices, they couldn't compete with TRU pricing, nor did they have the money to buy exclusives like TRU did.

You can claim that but Toy's R Us disagrees. They are placing the blame on other companies like Amazon and Wal Mart. Sure Toy R us screwed up but really it was inevitable. They would have limped on for a few more years but eventually they would have seen the same results.

[Tech614]

You can claim that but Toy's R Us disagrees. They are placing the blame on other companies like Amazon and Wal Mart. Sure Toy R us screwed up but really it was inevitable. They would have limped on for a few more years but eventually they would have seen the same results.

TRU reached it's peak revenue in 2012 and was stable with those numbers around $13 bil all the way up to present.

They did not have a lack of market, nor did they have declining sales.

What they had an issue with was paying their bills. They let a $2bil bailout in 2005 balloon into a $6bil debt as of modern day. That is the reason they went under, you seem to be hip to the buzzwords in articles without actually looking at the numbers. In reality online shopping had little to do with it, in fact online shopping in general is ass for Toys as the hot items sell out in minutes on Amazon. Not to mention TRU, Walmart and Target all buy in store exclusive toys you can't buy online period(oh you can buy them for triple the price on ebay ).

Of course some dumb ass big wigs are going to blame the "Amazon boogeyman" for the fact they failed to properly budget their bailout payback, which should have been paid off in 2010 let alone being triple the size in fucking 2017. That's the copout for not placing the blame where it belongs: themselves.

[Khaza-R]

You can claim that but Toy's R Us disagrees. They are placing the blame on other companies like Amazon and Wal Mart. Sure Toy R us screwed up but really it was inevitable. They would have limped on for a few more years but eventually they would have seen the same results.

To be fair, Toy R Us model for massive retail spaces was pretty outdated. They might have of survived if they had downsized and cut real estate costs. KB Toys might be able to operate under a niche market if they don't try to compete with Amazon, Target, Walmart, etc

[vindicatorx]

There wasn't a lack of market. TRU accounted for 12% of all toy sales in the US. That is a massive fucking market. Please educate yourself on why they went under before trying to comment on it.

Perhaps you should take your own advice. Amazon had an increase in Toy Sales by 12.6% in 2017 over 2016 alone. They already hold a larger share of the market than ToysRUs did and now it's just going to get larger. Please, by all means, invest in Kaybee toys and let me know how that turns out for you. You seem to think you have a clue on what you are talking about it would be amusing if you put your money where your mouth is.

[Laerrus]

Good to see a brand from my childhood returning, I used to buy really cheap Colecovision and NES cartridges from KB Toys back in the 80's.

[Tech614]

Perhaps you should take your own advice. Amazon had an increase in Toy Sales by 12.6% in 2017 over 2016 alone. They already hold a larger share of the market than ToysRUs did and now it's just going to get larger. Please, by all means, invest in Kaybee toys and let me know how that turns out for you. You seem to think you have a clue on what you are talking about it would be amusing if you put your money where your mouth is.

You don't seem to understand how numbers work. Amazon's 12% increase on THEIR OWN numbers is not 12% of all toys sold in an entire country.

Amazon did not sell more toys then TRU. In fact, the only source even close is Walmart. The next closest is ebay(and guess where a lot of those where bought and resold from )

Even fucking Target is ahead of Amazon on toy revenue. Amazon toy selection is ass, and it looks like they are finally taking this opportunity to actually get in that game. TRU, Walmart and Target are the big 3 in the US for toys.

[Aurrora]

Physical stores are on there way out for a lot of things.

If anything is going to demand instant gratification it’s a child.

[Tijuana]

Why? A huge market just opened up for them.

Let’s hope they learned from KB’s mistakes of the past, you can’t compete if you’re marking everything up by 10-20%.

Standard retail mark up is 100%, much more than 10-20%.

[Tech614]

Standard retail mark up is 100%, much more than 10-20%.

He meant 10-20% as in KB Toys charged 10-20% more then competitors to keep up with mall costs.

Just like how if you buy shoes, hats or other clothing items in malls they are usually 10-20% more then if you just went to the manufacturer's site and waited on shipping.

You not only pay rent as a mall store, you also owe the mall a certain % of your revenue. So yea, as long as new KBs open up in malls nothing will change.