What's the benefit for a store to sell exclusive LEGOs? Same concept. LEGO hangs signage and gets to move product from their warehouses while the store benefits from the sales of the product.

 

No we don't. The "store within a store" concept implies that they'll put up barriers and operate independently within the other store with their own employees and registers, sharing only the basics like trucks and distribution. But in truth, that may not even be the case, as in reality it could just be a bunch of signage and a new planogram for the bigger store to just handle themselves.

Using Target again as the example, it's like when they get a big set of some designer's fashions and products, and say "such and such now at Target". (Sorry I'd give an example, but I couldn't remember the names of any of that crap even if you put a gun to my head) But no one from that designer actually came to run the section, it was really just another name brand product stocked and sold by Target.

We don't know yet what this is going to actually look like, but more and more I get the feeling it will be the case of the larger chain rebranding their toy section as Geoffrey's, rather than an actual mini-TRU ran independently within that chain. At least at first, I'm sure the plan is to hopefully work their way back up to having their own retail space to run themselves again someday.

 

If you are not familiar with Geoffrey's Toy Box, this is NOT a new concept. After Hurricane Harvey here in Houston, the TRU on 59 in Humble flooded (along with everything else in the are). Th store was closed for repairs and then reopened as Geoffrey's Toy Box. A scaled down, wire rack, narrow aisled "warehouse" look that was set up very similarly to the way Halloween Express and other specialty shops are set up. It was not collector friendly and only had more popular, main stream toys for sale. In fact theu never got any Transformers even after I asked about them. This incarnation was/is akin to the TRU Express stores that were popping up for a bit especially around the holidays. While it didn't sport the inflated TRUE prices, it was not anything to get excited over and really only featured items that you could easily get at Target, WalMart or online. There were some TRU exclusives but nothing new and featured all existing stock that had already been sitting on shelves for some time.

In addition to all this, there are vendors such as the maker of Bratz that have vowed to not do business with the company after the whole liquidation and selling off assets occurred. The owner is quoted as saying that he will not offer them credit and even if they paid in cash, they will not do business because of how they handled themselves from a business standpoint. Now this may all be hogwash after they truck loads of cash to his front door, but if other smaller companies take that stance as well, this may also be a failed venture.

 

The store within a store concept will look like how KB Toys Express set up in Sears during the holiday season.

 

Can't see Target or Walmart doing this. They already have a toy section dedicated in each store so why would they want to go and have to pay the extra fees and liscencing when it's not going to generate more foot traffic than they already have. This concept will most likely be reserved for stores that don't have dedicated toy sections but would benefit from having something else for customers to shop for while already at the store. Again: akin to KB Toys Express at Sears.

 

In other news medical cannabis will become legal in the UK.

 

Well, for one thing, I don't think it'll end up at Target or Walmart. And no, they CAN'T run their own store-within-a-store the way you are describing because they have no infrastructure to support it - they sold all of THAT off earlier this year.

 

Many people didn’t have any product in their stores to buy.

I just imagined Food Lion with a Geoffrey’s Toy Box within it.  

You know how Target has Starbucks in most or all of their stores? Or how Wal-Mart has McDonalds or Subways in their stores? It’s basically like that.

 

Well no, I use Target as an example because they have a lot of similar set-ups for other products, but there's no way they will get involved with TRU just to sell toys. Same with Walmart, who will take one look at this and say "setting up a big toy department at Christmas is our plan already, and we can and always do that ourselves, so what the hell do we need Geoffrey for?"

I don't really see Meijer's doing this either, they're toy section is fine for what it is. A much much smaller brand like ShopCo could get in on this, but that is pretty small time so I doubt it.

Their best bet of all is if TRU can somehow get into Kohl's stores. Kohl's toy section sucks, if you can really even call it a toy section, but they're a big enough player at retail during the holidays that they just might see the appeal of throwing their hat into the toy sales ring, and would actually bring in Geoffrey to make it happen.

 

Actually I can see Walmart doing something like this by turning the indoor part of their Gardening Center into a Geoffrey's Toy Box For the Christmas Season allowing them to shrink their own toy space to thier own exclusive items in order to devote more space to high end electronics and games. They may make less profit on toy sales but that would be mitigated by GTB's rent for the space.

 

YOU CAN\'T KILL A GOD!

 

You and many, MANY people, I suspect (including myself).

 

KB Toys became defunct but it's returning:

- KB Toys - Wikipedia

Sears doesn't seem to be doing so well, either:

- Sears - Wikipedia

 

As I've said before in the other TRU thread, Bain et al didn't just pounce on a healthy, thriving business. Leveraged buyouts don't just "happen". ZapRowsdower's comment about a wounded animal is apt, but it was a self-inflicted wound.

Considering how much money Hasbro and Mattel (among others) lost to TRU, I wouldn't hold my breath waiting for exclusives from either company.

According to TRU's press release, Geoffrey LLC's "existing secured lenders" will be acquiring the IP assets. Solus Alternative Asset Management is among those lenders. I'll admit that I've been unable to find a detailed list of these lenders, but I'm guessing Solus isn't the only firm that's been in on this train wreck the whole time.


This entire "comeback" just reeks of bloodsuckers trying to squeeze out one last drop.

 

My speculation is that the company left holding the bag after Bain walked away and after all the liquidation was done decided to do a forensic accounting autopsy on just what they had and found out, surprise! most of the reason TRU failed was because of an insane debt load on it and it would have actually been possible to save the chain had they not torpedoed it with Bain's debt. (He did break Batman's back after all,,,)

I also think there's a huge "casual" toy market that nobody wants to cede to Target/Walmart/Amazon just yet. Which if you think about it are just the latest version of a traditional department store. ("Get your lawnmower, bedsheets, jewelry and toys for the kids under one roof!") all you have to do is look at a Sears or Macy's toy department to know how badly that gets mishandled. So yes I think there is room in the market for a dedicated toy store (preferably brick & mortar) but it has yet to shake out yet.

Also, Barnes & Noble has doubled their toy section in what used to be the music department, and even AC Moore's crafting stores have upped their percentage of what one would consider "toys".

Gonna be an interesting retail season.

 

Pointing out that TRU was having trouble before Bain et al, while true, tends to overstate the point. $1 Billion in debt is bad. $6 Billion in debt is exponentially worse.

"Self-inflicted wound" simply doesn't do the situation justice. TRU had a bad cut, sure, but Bain et al then took a machete to it.

 

I go to our local Barnes and Noble frequently (usually at lest once a week), and I can vouch for the fact that they don't have Transformers, not even collector's stuff like the Studio Series.

 

Yeah, the music dept reorganization was less a "toy" expansion and more a "geek-gift boutique" expansion. Rather disappointing, actually, as 95% of all that stuff is pretty much crap to me, being highly niche.

 

Sears has a toy department? Check the date on your Delorean.

 

Looks like Kroger is the winner.
And it looks like a pallet drop of crap.
Geoffrey's Toy Box: Coming to a Kroger Store Near You?