Toys R’ Us Expect 30% Increase in Profits This Holiday Season
(NYSE: TOY) Toys R’ Us has addressed the holiday season with optimism for an annual increase in profits. After suffering a famine last year in toy sales, the company expects to make a massive comeback, hiring over 45,000 new workers to handle big holiday season shopping events.
Toys R’ Us holds a monopoly over toy sales in America, outnumbering other stores both in sales and number of locations disproportionately. Former competitors such as KB Toys have collapsed into obscurity, retreating to the national Toys.com.
When polled, 81% of buyers said that they will be shopping in-store as opposed to online for their children’s holiday gifts. 97.2% of these buyers indicate that this is due to door buster deals and bundles, which are only usually offered in store and not online.
Some stores like Kmart have begun offering exclusive online coupons on a first-come, first-serve basis, allowing users who log on early and remain in line to purchase the cheapest deals and pick up their bundle in a local store in time for Christmas.
Toys R’ Us recently expanded their electronics section, adding over 500+ new products for the holiday season. This is due to the fact that electronics have outsold traditional toys massively over the last few years. The toy vendor has considered partnering with a carrier to create a custom phone service for young teens and children in the past, but there have been no further announcements regarding this plan.
It is sure to be a holiday season to remember for the kids, with all kinds of new toys in stock and the sparkle of Christmas magic just a few short weeks away.