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Blog - general merchandise liquidation

A big toy retailer’s demise could mean big profits for you this holiday season.

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Earlier this year the retail industry lost a once dominant institution in the world of children’s toys. After its 70 year run Toys R Us was forced to shutter its doors in 2018 after several attempts to salvage, the faltering retailer collapsed. Many now grown-up kids will probably have fond memories of the toy chain and shopping there as a kid but times and consumers shopping habits have changed dramatically since the late 40’s when Toys R Us first opened its doors. Toys R Us struggled to remain relevant and profitable in the last two decades as the age of the big box retailer and the internet dawned, so its demise though sudden was not unexpected.

Despite declining sales, the retailer was still a significant presence in the retail world at the time of its bankruptcy operating just under 1700 locations and doing an estimated $7 billion dollars in toy sales. What remains to be seen is how this will reshape the retail world and who will successfully fill the void left by Toys R Us.

The big names in the retail industry realize just how many new potential customers are at stake here this holiday season and are already taking steps to lure in these holiday toy shoppers. Big box retailers such as Target and Walmart both plan to expand space dedicated to toys and improve their overall mix of items to try and pick up these former Toys R Us customers.

Amazon too is expected to take a page from the Toys R Us playbook this year by releasing a holiday toy shopping catalog that will be mailed directly to consumers and also distributed via their whole food’s locations. This is a very old school marketing approach for the leading internet retailer but it may pay off big for them. 40% of Toys R Us sales were normally made in the holiday 4th quarter and the retailer was well known for its phonebook like holiday toy catalog.

What appears to be shaping up for this holiday season is a storm of market forces that could turn out to be a huge windfall for big-box retailers, Amazon and you the independent retailer. Billions of dollars in toy sales are up for grabs this holiday season and if you want a piece of this pie you can get it, but you have to act now. At Foxliquidation we don’t have a dedicated toys category, however, resellers interested in selling toys this holiday season should focus on our general merchandise lots which are loaded with toys, games and electronics that kids want but the important thing is to act now. There are two important reason why you need start now first and foremost is selection. A wide selection is available now but will not be for long as we get closer to the holidays. Don’t get shut out and stuck on the sidelines watching as all of the best merchandise disappears. Second expect some deep discounting late in the season as the big players start to sacrifice margins for market share. Cash in this year by grabbing those pre-season sales, remember this is a $7-billion-dollar pie and everyone wants a piece.

Toys are always hot sellers during the holiday season and this year could be one of the hottest on record for resellers. So target toy’s this holiday season and most importantly get started now.   

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