Toys R Us getting out of toy biz?

[Sandal16]

Toys R Us wants out of toys
RESTRUCTURING: The company will run its baby products division separately, and wants to sell its main business as it struggles to compete with big discounters.
"The series of steps we are announcing today reflect the fact that our global toy business and our Babies R Us business operate in distinct markets, and are at fundamentally different phases in their growth cycle.”
John Eyler, Toys R Us chairman and chief executive of Toys R Us, issued a stunning statement Wednesday that it plans to split off the babies-related division and sell the main toys business.

In an "update" on the company's strategic review, the struggling group said it had decided to separate the global toys and the Babies R Us businesses but it had not yet decided how to do so.
"As part of this comprehensive review, the company is taking steps, among other actions, to explore the possible sale of the global toy business as well as to prepare for a possible spin-off of Babies R Us," the statement said.
Toys R Us, hurt by competition with major discounters such as Wal-Mart, said it also would restructure the toy business to "dramatically reduce operating and capital expenses" and boost cash flow.
The group said it planned to: Separate the toys and babies divisions by the first half of fiscal 2005; restructure the headquarters in Wayne, New Jersey and cut headquarters and toy business operating costs by US$125 million by fiscal 2005 from last year.

[ShainaT]

WalMart and Target (one-stop shops) are killing everything.

I'm a SAHM and WalMart is the one store that is busy around here anytime day or night. That store is always packed....I can't find a good time to go there.

People shop for price plain & simple.

[Twinplets]

I drive past 2 Wal-Marts (and near a third) as well as a Target to get to Toys R Us when I'm toy shopping. Although I admit to picking up toys at those other two stores when I'm mostly buying "stuff" and also need a birthday present for someone. The other stores might be more convenient, but I love the wide selection at Toys R Us. It's a good thing I'm going crazy trying to get the house clean, or I'd buy way too much stuff there.

[Shainie]

If they close, I hope the big retailers (like Walmart and Target) increase their selection. I got to toys r us when there's something specific I'm looking for, because 9 times out of 10 they'll have it.

[bestmidwest]

Originally Posted by Shainie

If they close, I hope the big retailers (like Walmart and Target) increase their selection. I got to toys r us when there's something specific I'm looking for, because 9 times out of 10 they'll have it.

I know exactly what you're saying. I am afraid that I am a culprit in the demise of TRU because I only go there when I have something really specific in mind (like a filter or cover for the pool). Otherwise, it's just too easy to pick up needed toys at Target or Walmart when shopping for other neccessities. I would say I walk into TRU fewer than 4 times per year and if I'm like everyone else, I can see why they're in trouble.

Also, my kids are into videogames now more than toys and those are much cheaper elsewhere.

[mayfly]

Originally Posted by ShainaT

WalMart and Target (one-stop shops) are killing everything.

I'm a SAHM and WalMart is the one store that is busy around here anytime day or night. That store is always packed....I can't find a good time to go there.

People shop for price plain & simple.

You are right, and I have heard people warning about this ever since WalMart opened. The problem comes when WalMart shuts out all of its competition, what will make it keep its prices down then?