TOYS ‘R US
F. Scott Fitzgerald once said: “There are no second acts in America.” He was wrong. Babies R Us is making a comeback. The brand, now owned by WHP, has opened a flagship store in the American Dream Mall – the same mall where WHP relaunched sister company, Toys R Us.
My predicition: WHP will follow the same game plan that it used with Toys R Us. Start with a flagship store, get some brand awareness, and then work a store within a store deal with another retailer.
“Dream On Me Industries” has purchased eleven Buybuy Baby stores out of bankruptcy. “Dream On Me Industries” manufactures cribs and strollers, which it sells through Amazon, Walmart, Target, and other mass merchandisers.
The consensus is that they will likely open all or some of the eleven stores. After all, they have already invested $17.2 million ($15.5 million for the company’s non-physical assets and $1.17 million for the eleven stores.)
After spending that much money, it would make sense to resurrect the stores. Except for two caveats:
- How will their current customers (Walmart, et al.) feel about it?
- They have never operated a retail store.
The more retail outlets, the better. So best wishes for their success.
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