Pretty good news from Toys R Us

April 8, 2009

The toy industry needs a healthy Toys R Us so the company’s report of a profitable 2008 was pretty good news. Playthings magazine put it well when it reported on April 2, 2009: “Toys ‘R’ Us Inc.’s fiscal 2008 numbers are in, and they’re not bad compared to a retail landscape littered with struggling competitors and an overall domestic toy business that saw sales decline during the period.” Amen.

Amid the good news, however, was a cautionary sentence for traditional toy manufacturers: “The decreases in core toy and learning products sales…were partially offset by increases in TRU’s video game-focused entertainment business, fueled by ’strong demand’ for video game consoles, new video game software releases and related accessories."

I have stated before that I believe the decline in toy 2008 toy sales was not so much at the hands of the economy as much as it was due to Moms moving their purchasing dollars out of traditional toys and into alternative forms of play like Wii. All the more reason for the toy industry to embrace virtual play and electronic gaming.

Posted by Richard Gottlieb on April 8, 2009 | Comments (5)

January 7, 2012

In response to: Pretty good news from Toys R Us
Lyndall commented:

My porbelm was a wall until I read this, then I smashed it.

April 10, 2009

In response to: Pretty good news from Toys R Us
Kim Vandenbroucke commented:

I agree Nate, I think that strong physical product is extremely important if Toy Nation is going to compete with our virtual counterpart. Just as the wii has changed the way people think about video games, we too must keep reinventing toys and games to keep them feeling fresh and interesting. As for the TRU news, it seems like a mixed bag. Great that TRU is staying afloat because Richard is right, we need TRU. As for the REASON it's up - not good news for Toy Nation. So let us all ask ourselves, what can we do to snag the attention of any consumer entering TRU to purchase a video game? Sounds like we're up for a bit of healthy competition between Toy Nation and Video Game Nation. Let the game begin...

April 9, 2009

In response to: Pretty good news from Toys R Us
Nate Scheidler commented:

I still don't think embracing virtual play is as important as producing good and viable product with extended value past its initial use. That is equally important whether the product is physical or virtual.

April 9, 2009

In response to: Pretty good news from Toys R Us
Nate Scheidler commented:

April 8, 2009

In response to: Pretty good news from Toys R Us
Video Man commented:

Sounds like good news for the Video Game industry and not the Toy industry. Misleading first few sentences. Is Playthings now going to cover Game Stop?