Business Wars Toys R US vs KB Toys | Toy Hunter | 2
Nov 22, 2023
In the 1990s, Toys “R” Us reigns supreme but faces mounting pressure from Walmart and Costco. Strategic battles unfold as Toys “R” Us collaborates with toymakers for dominance. Meanwhile, KB Toys struggles to adapt to the shifting landscape of mall-based retail. The rivalry intensifies with Toys “R” Us chasing exclusivity while both giants grapple with online competition. Nostalgic tales of father-son bonding highlight the challenge of attracting new customers in a digital age, revealing the transformation of the toy retail world.
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Lazarus on Walmart's Board
- Charles Lazarus joined Walmart's board at the request of Sam Walton.
- Walton wanted to learn from Lazarus's retail expertise, despite Toys "R" Us being a competitor.
Profit Strategy
- Toys "R" Us made higher profits on exclusive and less popular toys than on bestsellers.
- Bestsellers were priced lower to attract customers, while other toys had higher markups.
KB Toys' Aggressive Bargaining
- KB Toys pressured a small toy company, Catico, into giving away puzzle glue for free with a large puzzle order.
- Catico agreed to the deal but reduced the glue stick size to maintain some profit.