How much longer can TRU survive?

[stephen_rockefeller]

I have wondered this for some time now, how long does everyone think they will be in business? I know some think that TRU is a thriving entity, but fact of the matter is that they are really not. Any predictions on how long before they have to shut their doors or do some of y'all think that will never happen. I say this with 100% percent honesty, if TRU was giving anyway LEGO sets I wouldn't think twice about not going there.

[Blackjack]

Do you mean if they gave polybags?

[stephen_rockefeller]

Do you mean if they gave polybags?

anything!!!! I refuse to go there......if they were giving away 10179s I still wouldn't step foot in there. Now I will say I have awesome friends that would go for me and get me one lol

[TheOrcKing]

I have always been in the same boat as you, Stephen. How the heck CAN they still be around? Ridiculous prices, lousy locations, no real sales (even with BOGOs you still pay more than retail), and half assed layouts. I simply have no idea how they can still be around and I know they had to do some major changes some years ago to the company. Yet here they are with all those cons I mentioned. Ugh....

[Geiss]

But are lego sales the only thing keeping the store going? Yes they are rediculus (see current minecraft deal) but even with lego being as popular as it is, it is far from the only thing keeping them going. From what I can see their video game prices are very competitive as well as them having a rather large selection of toys and baby products. They have the benifit of being a true toy store, as it is a paradise for little kids. Plus there is news of TRU expanding to china and SE Asia. I don't think they will be gone too soon, but you never know.

[jaisonline]

ditto. i have no idea how they are surviving even with their non-lego items. babiesrus is actually pretty decent on many items but toysrus, OMG. i assume they just get many impulsive parent toy purchases.

[TheOrcKing]

So far it's only their selection that gives them some worth but even then, their prices are just awful.

[spener90]

I have wondered how they are still around for a while. I went in one recently, the store smelled, was dirty, and obviously the prices were awful. I don't see how they are still around, but then again I also have shopping standards. Safe to say I haven't gone back, and the only thing that would drag me back would be a spectacular deal.

[dakotahorn]

Here's the deal. Do I like giving them my business? No. Do I understand their business model? Definitely. I can't imagine running a toy store in today's market. How horrible it must be. With every year that passes young children become more and more accustomed to video games as their form of entertainment. Now mobile games are the next wave as parents start to move onto their 3rd & 4th smartphone and are setting the old ones up for their kids to play with. By the time you get parents spending money on actual toys, you have to compete with Target and Walmart who both have huge buying power, and thats only if the parents aren't going through eBay or Amazon for which some won't even pay taxes or freight on. TRU is trying to survive in a very niche market which is probably why they are the only major player in the US. No one else could really thrive alongside them. Its the business model they have to have. But lets be honest, the reason you're even complaining about them is pricing. And with them raising prices everyweek for their BOGO... that makes me theorize they don't get 'regular' customers that shop there all the time, but rather sporadic traffic that wouldn't be considered educated consumers.

[JoshTX]

Some of their prices on other products are still pretty competitive. They have some pretty good video game sales from time to time, and unlike lego, they don't mark up the prices of video games when they do B2G1 sales. Also, they regularly clearance quite a few games which makes them occasionally quite a bit cheaper than Wal-Mart. I purchase games from them quite regularly. As far as the bigger side of the business, I don't have any statistical proof of this, but I personally believe that the success of Babies R Us has kept them afloat. Babies R Us has been ridiculously successful from what I can tell with the way they've handled business. They do a pretty good job of catering to new families with things such as baby registries, free classes and clinics for expectant Mothers and families, regular coupons and discounts on products such as diapers and formula (which are incredibly expensive in their own right), and they've partnered with quite a few healthcare conglomerates in order to get their name and logo in the sight of expectant Mothers and get their brand out there. Whoever handles their Babies R Us division has done a pretty good job at getting people in the store.

[stephen_rockefeller]

Yes the main reason I complain is the prices but there are other reasons as well. The TRU around me are most of the time filthy and the 17 year old cashiers they hire are very rude and clearly are only there because their parents made them get a job. The majority of the managers are clueless in my opinion as well.

[dakotahorn]

Yes the main reason I complain is the prices but there are other reasons as well. The TRU around me are most of the time filthy and the 17 year old cashiers they hire are very rude and clearly are only there because their parents made them get a job. The majority of the managers are clueless in my opinion as well.

Stephen, I'm going to say this with as much tact as possible.... you're in Arlington man. Dude you have to check out the Two-Story one over off of 75 in Dallas or the Southlake one. I even have had good experiences at the one by the NE Mall. All clean, all with good staff. The Southlake store had a gentleman who spent 30 minutes on the phone with me looking for Hogwarts all throughout TX locations.

[dakotahorn]

Some of their prices on other products are still pretty competitive. They have some pretty good video game sales from time to time, and unlike lego, they don't mark up the prices of video games when they do B2G1 sales. Also, they regularly clearance quite a few games which makes them occasionally quite a bit cheaper than Wal-Mart. I purchase games from them quite regularly.

As far as the bigger side of the business, I don't have any statistical proof of this, but I personally believe that the success of Babies R Us has kept them afloat. Babies R Us has been ridiculously successful from what I can tell with the way they've handled business. They do a pretty good job of catering to new families with things such as baby registries, free classes and clinics for expectant Mothers and families, regular coupons and discounts on products such as diapers and formula (which are incredibly expensive in their own right), and they've partnered with quite a few healthcare conglomerates in order to get their name and logo in the sight of expectant Mothers and get their brand out there. Whoever handles their Babies R Us division has done a pretty good job at getting people in the store.

This. Babies R Us has treated us wonderfully. My kid arrived just 6 weeks ago, so we are still active customers. Coupons, free photos, and price matching have earned my business for sure.

[sadowsk1]

I think there is a lot of competition for TRU as far as toys are concerned. I think a lot of the shoppers there will eventually age out and find other places to buy their toys. I like TRU on the whole. I have gotten great deals from them and have never been ripped off. I'm sure there are other people that shop in the same circumstances that feel the same way. I don't care for their customer service but if I have to muddle my way through that for a good deal. Oh well. I don't have their sales reports but an all in one toy shop with greater selection than most everyday stores has it's appeals. That's why I buy stuff online for more than I would pay in the store, for the convenience.

[Guest ph4tb0i]

I wonder about this all the time as well and from observations it just seems that parents don't price hunt on toys as much as they should, so they go to the one place that has become synonymous with toys for the past couple of decades. Crappy prices I agree but most of the time parents/relatives don't care since they're: 1. Have too much disposable income for their kids. 2. Too lazy to price shop 3. Don't know where else to go (let's face it, most people still think Amazon is still just for books). Have you guys actually seen it when other adults are buying toys? The clueless face is priceless. What pains me the most is seeing parents grab the Mega Bloks kit when their kids are not around. I really should tell them their kids will make them regret it in the future if they go Mega Bloks.. haha....

[stephen_rockefeller]

Stephen, I'm going to say this with as much tact as possible.... you're in Arlington man. Dude you have to check out the Two-Story one over off of 75 in Dallas or the Southlake one. I even have had good experiences at the one by the NE Mall. All clean, all with good staff. The Southlake store had a gentleman who spent 30 minutes on the phone with me looking for Hogwarts all throughout TX locations.

lol I am under no illusion that Arlington is ghetto as hell, the area I patrol is pretty gangster........that is why I live in the entertainment district with very little riff raff. I deal with thugs and gangsters all day at work I sure don't want to come home to it.

[TheDarkness]

They can survive long enough for me to acquire an adequate supply of 6857!

[Anakinisvader]

The are all over freakin EBAY now. If they ever decide to close all the B&M stores they will have a HUGE online presence. They will be able to lower their prices, because they dont have employee costs and such, and be very competitive. I predict this will probably happen within the next 10 years, maybe less. (probably not by choice)

[kerrmando]

I really do think they will survive for awhile. They are the largest online toy provider I believe?

[stephen_rockefeller]

A member a few months ago said that TRU was in financial ruins........I don't know if this is true but I don't see how it can't be. On a side I am probably just basing my hatred toward them based their markup on LEGO. You know how people get when they are really into something and they think everyone else is as well? Kinda like Lego investing lol

[Darth_Raichu]

I really do think they will survive for awhile. They are the largest online toy provider I believe?

They are the largest toy store period.

The are all over freakin EBAY now. If they ever decide to close all the B&M stores they will have a HUGE online presence. They will be able to lower their prices, because they dont have employee costs and such, and be very competitive. I predict this will probably happen within the next 10 years, maybe less. (probably not by choice)

Probably, but people love to touch and try the toys they are buying.

I do not see Babies R Us thriving online though. As pointed by dakotahorn, the personal touches give them pretty loyal customer base.

[Sauromosis]

TRU had been planning to go public until they recently canceled it. They got killed this last holiday season by the big box stores which sell many toys at a loss to drive traffic. So they are in trouble but they probably make a good profit on some items and my family enjoys going.

[emes]

I have wondered this for some time now, how long does everyone think they will be in business? I know some think that TRU is a thriving entity, but fact of the matter is that they are really not. Any predictions on how long before they have to shut their doors or do some of y'all think that will never happen. I say this with 100% percent honesty, if TRU was giving anyway LEGO sets I wouldn't think twice about not going there.

I know there's a ton of hate here for TRU and it's somewhat understandable, given that their prices prevent everyone here from easily making a profit on items that they sell. I understand this, but I would encourage everyone to base discussions like this on facts available in their financial reports that they're required to submit, rather than personal opinion of TRU. I'm no big TRU defender, but the facts should speak. It's also fair to point out that a business can in most circumstances charge whatever they want for their goods and services, and we as consumers can choose whether or not to do business with them.

TRU financially is in ok shape (might be better to say TRU is profitable). I wouldn't say "thriving entity", but they recently released a 10-K report on 3/29. Link here: http://phx.corporate-ir.net/phoenix.zhtml?c=120622&p=irol-SECText&TEXT=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9maWxpbmcueG1sP2lwYWdlPTg4MzAyMTQmRFNFUT0wJlNFUT0wJlNRREVTQz1TRUNUSU9OX0VOVElSRSZzdWJzaWQ9NTc=

Attached is a selection from the recent report. TRU is profitable, though not as profitable as they once were. I would also focus on EBITDA, which is stable. If you go back far enough, to 2006, they actually lost over $300 million, but have been profitable since.

Bottom line, TRU's future is not in the US market, so they couldn't care less what most of us here think...TRUs future is most likely in emerging markets.

[Legodog]

TRU is like the Minecraft set and the Death Star. They just wont die ;)

[emes]

Stephen, I'm going to say this with as much tact as possible.... you're in Arlington man. Dude you have to check out the Two-Story one over off of 75 in Dallas or the Southlake one. I even have had good experiences at the one by the NE Mall. All clean, all with good staff. The Southlake store had a gentleman who spent 30 minutes on the phone with me looking for Hogwarts all throughout TX locations.

I've had good experiences at the Southlake TRU as well. That's the closest one to me. The one on 75 can be iffy, and it's too close to a LEGO store to be worthwhile.

I thought the two-story one was on DNT? That one by the Galleria is decent, but still fairly close to two LEGO stores.