A leading voice in the US toy industry voice has warned that the demise of Toys R Us will negatively impact the industry.
Steve Pasierb, the president of the Toy Association, a US based industry trade body, has shared a statement on the closure of Toys R Us. “After three years of above average growth, 2018 now finds the toy industry at an inflection point,” Pasierb warns. He goes on to note that a flood of liquidated Toys R Us stock will initially weaken sales for other toy retailers, as consumers pick up the cheap products rather than pay full price elsewhere.
The biggest concern in the US is that no other retail chain offers the same toy focused experience that Toys R Us did, as Pasierb articulates, saying, “destination trips to reward children with a special toy or gift that once occurred at Toys R Us may never be recaptured. Lines that made it to market, thanks to TRU’s wide range and willingness to take risks and support entrepreneurs, might not find a new home.”
Despite the challenges ahead for the toy industry, the open letter ends on a positive note: “There will always be consumer demand for toys and games to support the business of toys and drive new channels of distribution.”