Based on what I read in those comments, I don't think Adam quite grasps the business reality of this TRU shop within Macy's store concept.
TRU Kids was the company which emerged from the TRU bankruptcy. It was basically a corporate re-organization - they emerged from the bankruptcy after liquidating inventory, auctioning off real estate, etc. Some management there came from the original TRU corporation. They attempted to partner with Target to power their online sales platform and launched the two store locations plus some pop-ups. But five months after they opened their first two stores in the United States the pandemic struck and they were among a significant number of retail casualties.
This newest incarnation has WHP Global taking over controlling interest in the TRU Kids company. So what does that mean? WHP Global is a company that looks for known brands that are in financial stress, but have wide name recognition. They swooped in to take over the TRU brand after the old management screwed the pooch not once, but twice. The CEO / Chairman of WHP Global will also be leading the TRU Kids company. That's a good development. Because the guy who was the head of TRU before the 2017 bankruptcy was also the CEO of FAO Schwarz before that toy store got run into the ground. Track records matter. Will this new CEO be any better? We'll see.
Based on the press releases so far, it sounds like a similar kind of store within a store model to what Target is doing with the Disney store. The big questions seem to revolve around corporate management, inventory and staffing. Will TRU have its own people within these stores, or are they going to be re-assigned Macy's staff? That's a big question, especially if the long term strategy is for TRU to establish its own brick & mortar locations. I personally think that they should look to establish smaller locations than the old stores, and in strip malls. That's the way a lot of brick and mortar retail is moving, and less square footage = less overhead.
The current retail landscape is the elephant in the room. Brick & mortar retailers are struggling and malls are dying. And with the supply chain, pretty much every consumer goods sector has been impacted by the slowdown in international shipping because of the pandemic. That's been readily apparent in the toy business. Getting product from manufacturers in Asia to their primary market countries has been challenging at best. The original launch target was for the 2021 holidays. I suspect that got moved back because of concerns about half stocked shelves could damage a relaunched TRU right out of the gate. Will the shipping situation improve by 2022? And will the new TRU business model fly? We'll see.
