Here's an interesting piece about how Toys R Us is considering leaving the toy business to concentrate on their profitable Babies R Us business.
By separating the businesses, Babies R Us would be able to thrive and build on its core market of supplying not just baby toys, but gear like bedding, furniture, strollers and clothes to expectant and new parents.
Interesting to see how they will be able to do this and maintain their brand identity while moving into some new directions. It certainly could also create some real troubles for toy companies, as this news ripples through the industry. While there was no indication that they were going to just close the Toys R Us stores, this would put discount retailers like Wal-Mart in a much stronger position come the holiday season.
First FAO Schwarz, now this. Don't we like toys any more?
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