Toys “R” Us could be closing all their stores this week!
Looks like the fate of Toys “R” Us has come faster than anticipated. According to several reports, the retailer Toys “R” Us, who filed for bankruptcy in 2017, may shut all of its U.S stores as soon as this week. If you're looking to get your hands on some toys for the little ones, now is your chance. From the looks of it, Toys “R” Us doors are closing faster than expected.
Many of us can remember taking a trip into the toy haven to pick up the latest and greatest toys, setting up a baby registry, or running in for a last minute birthday gift. However, it looks as if you’ll have to find a new spot for all that. The impending closure of the toy retailer is fast approaching due to the decrease in shares of countless publicly traded toy companies.
According to WIVB, Hasbro fell 3.5% Friday morning while Mattel took a 7% hit. Investors are known to be preparing for the worst, as even smaller toy companies are experiencing an unfortunate downfall. Jakks Pacific fell nearly 5%, whereas Canada’s Spin Master, which owns the famous Hatchimals toys, was down by 3% on the Toronto Stock Exchange. Yikes! Not the best outlook for toy companies right now.
If that wasn’t bad enough, even Lego has been impacted by the sudden change in stocks. For the first time in over thirteen years, the European owned company revealed earlier this week that they’ve experienced massive sales drops, as well. The closing of Toys “R” Us doesn’t only affect consumers and their needs. It will hit Hasbro and Mattel the most, as the toy store accounts for 10% of those companies’ overall sales.
It is reported that without Toys “R” Us, companies such as Hasbro and Mattel will struggle to promote anything other than their already popular items. This huge hit can be linked to the increase of video game purchases and other high-tech kids toys that have overshadowed the need for action figures and board games.
With the unfortunate events revolving around Toys “R” Us, many are wondering what this means for Babies “R” Us. There are no major reports that touch on whether Babies “R” Us will close down, too. However, residents of Milwaukee, Wisconsin will be saying goodbye to one of theirs this month. According to the Sentinel Journal, the Babies “R” Us in Brookfield will officially close their doors at the end of March. As for the rest of their locations, a spokesperson for the company stated, “Babies “R” Us will remain open and workers are on standby ready to help.”
With Toys “R” Us in a major struggle, we can expect more reports on their fate soon.