Toys ‘R’ Us, which was itself responsible for “big box driving little mom-n-pop store out of business” stuff in the 80s and 90s, now says it might have to quit the toy business because of discount price pressure from Wal-Mart.
The $11 billion company, which rose to become the nation’s largest toy retailer by developing a once-successful formula that pushed its rivals out of business, said in a statement that it was determined to split its toy business and its faster-growing baby supplies division, Babies “R” Us, into two companies. It also said it planned “to explore the possible sale of the global toy business.”
[…] During last year’s December holiday season, Wal-Mart, Target and other discounters captured a large share of the $27 billion United States toy business by expanding their selections and slashing prices. Wal-Mart now has about 20 percent of the market, said Chris Byrne, a toy consultant based in Manhattan, and Target has about 18 percent, while Toys “R” Us has dipped to 17.
Ten years ago, Toys “R” Us held 20 percent, followed by Kmart, Sears and Ames, Mr. Byrne said. Wal-Mart and Target were insignificant players.
The whole Babies ‘R’ Us bit may be in danger, too. Wal-Mart is expanding its own babyware section.
All I have to say is that Microsoft better hope that Wal-Mart doesn’t get into the Operating System business …
(via the Beat)
You mean you haven’t pre-ordered Waldows 2005???
Where’s Waldows?