Word: toye
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
Geoffrey may seem like an extravagant, larky enterprise dreamed up by Willy Wonka, but Toys "R" Us badly needs it to work if the firm is to break out of its deep slump. Wal-Mart and other big discount chains like Target have eroded the company's sales in recent years, and now it looks as if Wal-Mart is circling for the kill, escalating a price war that may eat up whatever profit margin Toys "R" Us has left. Despite rising consumer confidence and blistering U.S. economic growth of 8.2% in the third quarter, analysts expect sales at Toys...
Putting the fun back in toy shopping--not least as a way of enticing customers to stores all year round--is critical if Toys "R" Us is to survive the toy wars, which look particularly brutal this season. In late September, Wal-Mart lobbed an ominous warning shot by discounting a basket of popular toys several weeks earlier than in past years. "We're going to be the low-price leader, and that will include holiday toys," declares Wal-Mart spokeswoman Karen Burk. To its rivals, the depth of its price cuts has come as a shock. The company...
...successful mass merchandisers, Wal-Mart and Target can more easily afford a price war than Toys "R" Us and other toy specialists. Wal-Mart's sales of high-margin items like flat-screen TVs can make up for losses on low-margin toys. It's a classic loss-leader attack. Wal-Mart figures that supercheap toys will lure customers to the store, where they might buy pricier items. That puts the squeeze on toy specialists, which must either follow suit and risk losses or try to hold their prices and bet that their superior customer service and selection will enable...
...Mart started discounting so early and so deeply, it may already be experiencing shortages. A pre-Thanksgiving survey of several Wal-Mart stores, conducted by investment firm Harris Nesbitt Gerard, showed the retailer has been "chronically out of key items," including Bratz dolls, Hot Wheels TWrecks and Hulk Hands. Toys "R" Us, which has nearly matched Wal-Mart's prices on many of those hot items, has so far remained better stocked, though the crucial test will come in mid-December when last-minute shoppers scramble to find the toy their kid must have...
Longer term, there's little question that Wal-Mart has gained an edge. Its share of the $25 billion traditional toy business has grown from 10.8% in 1993 to 21% today (and some analysts estimate it's more like 25%). Toys "R" Us, KB Toys and smaller toy chains, meanwhile, have either lost share, quit the business or struggled to hold ground. Says analyst Todd Kuhrt of Midwest Research, "It's clear that consumers are voting with their wallets for Wal-Mart and Target...