Posted July 29, 2009

Good Grief!

Can it be true? Is Walmart cutting the toy department by 2/3? Whatever will become of the toy industry? Where will families, grandmothers, aunts and uncles, moms and dads, kids of all ages find toys and playthings?

            

After the spate of safety issues and recalls, poorly managed at best by some of the companies involved, Walmart may have decided that selling groceries and diapers is safer and more profitable in the end. 

            

Earlier in the year at ToyCon, Walmart reported that they were cutting toy SKUs (stock keeping units) but ultimately selling more toys as a result. The rumored reduction was 30% of shelf space. Two months ago the rumored toy department reduction was 50%, and now I have heard from a smaller toy company that the number is up to 66% of the Walmart toy department. Target is reportedly reducing toy shelf space by 30% as well, and like Walmart, the reduction in shelf space might be even greater. 

            

To add insult to injury, or vice versa, Toys R Us is devoting less space to toys and more to bottled water and other non toy goods. 

            

Oy vey!

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