[Grippen]

Here in Portugal ToysRus is an Iberian company which serves Portugal and Spain. They also filled for bankruptcy a few weeks later. Over the next months stores were not stocking and seemed that they were due to close.

But in August a private fund based in Portugal bought the biggest share of the company. But here as there it doesn't seem they will focus on customers. In fact they will not close any store or fire anyone which is good but I don't think it will go anywhere.

These big toy retail companies should hire people with love for toys and some toy market know-how. Corporate experience won't do anything for them at this stage where the paradigm is changing and you need a clear vision for toy stores. Needless to say that the most recent toy stores were opened by toy lovers with a proper online store.

In my opinion and talking about the toy store market here I think they have to streamline their portfolio. Most of the toys they have won't sell at all. They should focus on the normal major brands like Lego, Playmobil etc... but discard everything else. Make good promotions on the video games and have a section for collectors. Close many of the stores because online (if they do a proper job in the website) they can do more money and can sell the other stuff that is there just occupying room and collecting dust. They could also add a section for supplies such as paints, tools etc. Because they are bigger they can perhaps have better prices if they buy big quantities.

Maybe there is still some strong competition from major retailers if they do this in US, but in Europe and specially in Portugal its not the case so I'm sure this approach would be successful.