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Old 09-28-2017, 07:37 AM   #3
tmntman
Mad Scientist
 
Join Date: Jun 2003
Location: Madison, WI
Posts: 2,153
Quote:
Originally Posted by CyberCubed View Post
If you hadn't heard, Toys R Us is filing for bankruptcy. As we know the vast majority of Playmates TMNT has always been sold at Toys R Us.
Two important clarifications:

1. Where do you get the idea that Toys R Us is responsible for the majority of TMNT sales? According to this article from CNBC (link)
"Toys R Us made up 11 percent, 9 percent and 15 percent of Mattel, Hasbro and Jakks Pacific on 2016 global sales respectively, according to Jefferies analyst Stephanie Wissink."
So what makes you think that they are so much more important to Playmates and the TMNT line?

2. This bankruptcy doesn't mean that Toys R Us is going under. This video on Youtube does a pretty good job of explaining what is going on with them: link. The TLDR of it is that Toys R Us has a mountain of debt as a result of some risky
decision making ten years. The bankruptcy isn't necessarily an indication that they aren't profitable, they just aren't profitable enough to cover that amount of debt. So it's a bit early to assume that you'll be seeing going out of business signs going up anytime soon.

Still, even if the worst comes to pass and Toys R Us does go under, the overall effect on the TMNT license would probably be quite minor. Playmates should have more than enough support from all the other stores out there to carry on almost unchanged.

If there were any change, it would probably just be a slight narrowing of the line which most of fans wouldn't even notice. Toys R Us can't compete with Walmart on price. Walmart will often sell toys at or below cost just to draw in customers to buy other stuff. (Or at least that used to be the case. And I have seen no sign of it changing.) For Toys R Us to compete they have to find other ways to compete. One of those is carrying items that other stores don't, especially exclusives. In particular, I could see large playsets and toys like the various sewer lairs, Jakk's Colossal figures (the four feet tall Turtles) or some of the recent huge Transformers such as this year's Trypticon no longer being produced. Such items take up too much room in stores with limited space for toys. And they don't sell all that fast. But they are a perfect for Toys R Us as they have much more space.

Where you would see a change is with other companies no longer making TMNT toys. We've already seen this twice when NECA dropped their TMNT Mirage line when they couldn't sell through Toys R Us and the TMNT Minimates have now been canceled because they couldn't get enough orders without Toys R Us' support. Though to be fair, even that would be limited since Playmates' license already limited this.
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