February 22, 2005

Predicting the Future of Toys R Us

It seems that WM's brick-and-mortar toy competition will not disappear:

The toy business probably will continue under private ownership, he said. "I don't think they will liquidate it for the real estate. I think there's too much brand equity in the Toys R Us name," Byrne said.

Toys R Us offers many services that competitors don't, he said. "They can be that resource for mom and dad. They have more to offer than the big boxes," such as Wal-Mart, the No. 1 toy seller, and Target.

Those discounters, he said, focus mainly on hit items. "They really are all about moving merchandise," Byrne said. "There are two very different business models, and there's room for both."

The future of Toys R Us, based in Wayne, N.J., is expected to be a concern at the industry gathering, the American International Toy Fair, under way this week in New York.

Posted by Kevin on February, 22 2005 at 08:35 AM