Shuttering Toys 'R' Us stores in United States put Apple products on clearance

Posted:
in General Discussion
The closure of all Toys 'R' Us stores in the United States could be beneficial for people looking to save money on Apple merchandise, as some of the chain's shuttering retail outlets are discounting the Apple TV, iPod touch, iPads, and other items in the clearance sale.




Reddit users are reporting the appearance of discounted Apple goods in the clearance sales, including instances of the fourth-generation Apple TV priced at $75, and an iPod Nano for $54. Other users have reported the Apple products are not part of the clearance for their nearby stores, so it appears to be on a store-by-store basis.

AppleInsider staff confirmed some stores are electing to discount Apple products, with four out of five closing outlets questioned advising the devices and accessories were part of current clearance sales.

Not all stores are currently offering clearance sales on their products yet, but are likely to do so in the future. Due to the logistical process of closing hundreds of stores across the country, the remainder may start holding their own clearance offers in the coming weeks.

The discounts on Apple products are also limited only to the stores currently holding the closure-related sales. At the time of publication, the online Toys 'R' Us store is not holding a close-out sale, and continues to offer Apple products and accessories at their regular prices.

The company will be shutting or selling all of its 735 stores across the United States, court documents seen by CNN revealed, resulting in layoffs of approximately 31,000 workers. The 70-year-old business filed for bankruptcy in September last year in a failed attempt to turn around the company, disclosing at the time it had around $5 billion in debt and was spending about $400 million a year just on servicing those debts.

The store chain earned just $81 million in pre-tax profit for the fourth quarter, a 75 percent year-on-year reduction and $250 million below its target. It is alleged the company is now spending nearly $100 million per month to continue existing, and with no sign of a buyer to rescue the firm, management realized plans to stay in business until the end of 2018 was doomed to failure.

Comments

  • Reply 1 of 19
    Cesar Battistini MazieroCesar Battistini Maziero Posts: 180unconfirmed, member
    And the internet revolution started.
    watto_cobra
  • Reply 2 of 19
    SpamSandwichSpamSandwich Posts: 33,408member
    Got any out of stock functioning iPod Shuffles?
    watto_cobra
  • Reply 3 of 19
    sdw2001sdw2001 Posts: 17,380member
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    watto_cobra
  • Reply 4 of 19
    SpamSandwichSpamSandwich Posts: 33,408member
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    All companies are not created (or run) equal.
    watto_cobra
  • Reply 5 of 19
    hmlongcohmlongco Posts: 269member
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation ...
    Wan't just Amazon. Walmart and Target SuperStores didn't help either. Neither did Costco and Sam's Club, for that matter.

    Plus there's the no-so-minor fact that for many kids these days, their "toys" are their phones, tablets, and game machines, with most of the content delivered digitally...
    gregg thurmanwatto_cobrachasm1983
  • Reply 6 of 19
    Mike WuertheleMike Wuerthele Posts: 6,089administrator
    Got any out of stock functioning iPod Shuffles?
    Nanos at present. But as the clearances continue, it will be interesting to see what pops out of the warehouses, like when Circuit City closed.
    watto_cobrachasm
  • Reply 7 of 19
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    It's not just the competition. In fact, they might still be viable with the exception of one major thing: When the investment groups took over in 2005, they saddled TRU with $5 billion in debt (https://www.washingtonpost.com/business/economy/analysts-toys-r-us-might-have-survived-if-it-did-not-have-to-deal-with-so-much-debt/2018/03/15/42752326-286a-11e8-874b-d517e912f125_story.html?utm_term=.c07adbb1efb1). They've never been able to get out of that and, at the rate they're burning cash, they will have nothing left come May.
    mark fearingwatto_cobracolinng
  • Reply 8 of 19
    galfridus said:
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    It's not just the competition. In fact, they might still be viable with the exception of one major thing: When the investment groups took over in 2005, they saddled TRU with $5 billion in debt (https://www.washingtonpost.com/business/economy/analysts-toys-r-us-might-have-survived-if-it-did-not-have-to-deal-with-so-much-debt/2018/03/15/42752326-286a-11e8-874b-d517e912f125_story.html?utm_term=.c07adbb1efb1). They've never been able to get out of that and, at the rate they're burning cash, they will have nothing left come May.
    Thank you for pointing this out! Rack it up to good old greed. They strung it up, shook it until all the pennies fell out of the pockets and then left it for dead.
    watto_cobra1983
  • Reply 9 of 19
    zroger73zroger73 Posts: 774member
    My smaller town of 80,000 is 120 miles from the nearest Apple store. Walmart and Target have low-end electronics. Best Buy has become somewhat of a showroom for online retailers who sell cheaper and/or without sales tax. Most of my purchases have been diverted to Apple.com, Amazon.com, and BHPhotoVideo.com.

    With RadioShack gone, I can no longer jaunt across town for the occasional $0.50 capacitor, diode, or resistor. I have to order 99 more than I need, pay 20x the value of the component in shipping charges, and wait a day or two for the order to arrive.

    The first time I ever stepped foot in Kmart was when they closed. I left empty-handed because the "clearance" prices were too high.

    I stopped buying tools and appliances at Sears years ago when they started outsourcing and the quality went way down.
    watto_cobra
  • Reply 10 of 19
    foggyhillfoggyhill Posts: 4,767member
    galfridus said:
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    It's not just the competition. In fact, they might still be viable with the exception of one major thing: When the investment groups took over in 2005, they saddled TRU with $5 billion in debt (https://www.washingtonpost.com/business/economy/analysts-toys-r-us-might-have-survived-if-it-did-not-have-to-deal-with-so-much-debt/2018/03/15/42752326-286a-11e8-874b-d517e912f125_story.html?utm_term=.c07adbb1efb1). They've never been able to get out of that and, at the rate they're burning cash, they will have nothing left come May.
    So, vulture capitalist killed the company, extract all money up front (loan), leave the company to wither under the debt load and then walk away, recycle and do again... Good grief.
    Those kind of takeover were plentiful in the 1980s and alluded to in the film "Secret of My Success" and "Wall Street".
    edited March 2018 watto_cobraktappeStrangeDays
  • Reply 11 of 19
    maestro64maestro64 Posts: 4,895member
    Shows out of stock in Apple TV, and shows the full price, any deal must be in store only .
    watto_cobra
  • Reply 12 of 19
    SpamSandwichSpamSandwich Posts: 33,408member
    Got any out of stock functioning iPod Shuffles?
    Nanos at present. But as the clearances continue, it will be interesting to see what pops out of the warehouses, like when Circuit City closed.
    Fingers crossed.
    watto_cobra
  • Reply 13 of 19
    In the end it was debt, not competition that killed TRU.   You can modify all kinds of expenses, but debt service is there every month.

    Was TRU purchased with the intent to bleed it to death?  Only the ignorant would believe that.  For calendar 2017 TRU was profitable ($80 Million BUT $250 Million below target). TRU’s decline began about 7 years ago, that’s 5 years after the investor group purchased TRU.   During that time debt built up until it became unmanageable.

    This is not the way firms are acquired then liquated for the value of the parts.   That was the model during the ‘80s.  Carl Icahn made his bones then. He hasn’t done any of it since because owners the world over re-examined their firms and got rid of under performing assets that no longer showed on their balance statement (fully depreciated). Getting rid of those under performing assets increased the firms cash and made them far less attractive for Leveraged Buy Outs (LBOs). 
  • Reply 14 of 19
    Mike WuertheleMike Wuerthele Posts: 6,089administrator
    maestro64 said:
    Shows out of stock in Apple TV, and shows the full price, any deal must be in store only .
    FTA: "The discounts on Apple products are also limited only to the stores currently holding the closure-related sales. At the time of publication, the online Toys 'R' Us store is not holding a close-out sale, and continues to offer Apple products and accessories at their regular prices. "
    watto_cobra
  • Reply 15 of 19
    sdw2001 said:
    Talk about a total meltdown.  It's tough for these retailers to fight Amazon-ation out there, but one has to think that the plane could have been landed instead of slammed into a cliff.  Sears/K-Mart has closed hundreds of stores, and despite losing money for the year, turned a small profit last quarter.   How the hell can Toys 'R Us still have over 700 stores?  
    The guy who runs Sears, Eddie Lampert, apparently doesn't know anything about retail. That 1995 Brady Bunch movie when Mr. Brady says "kids put on your Sunday best, we're going to Sears" described my childhood in the 1970s. My family would go out to eat and then to Searstown in Key West, FL every Saturday evening. I remember anxiously looking through the Christmas Wish Book when it would come out. It's sad to see such an iconic company being run to the ground by incompetent management.

    watto_cobraStrangeDays
  • Reply 16 of 19
    tallest skiltallest skil Posts: 43,399member
    I can’t wait for Amazon to collapse and cause a total crisis in product availability since none of these physical stores are around anymore. On one hand, a bunch of useless stuff won’t be available anymore. On the other, it’ll be the start of the Second Great Depression and likely lead to the Federal Reserve buildings being burned to the ground. So a win win.
    bestkeptsecret
  • Reply 17 of 19
    chasmchasm Posts: 2,315member
    Got any out of stock functioning iPod Shuffles?
    If you're seriously asking, I am extremely confident you can find every possible variant of those devices at the Unclaimed Luggage Center in Scottsboro, AL -- an amazing place!
  • Reply 18 of 19
    StrangeDaysStrangeDays Posts: 11,052member
    I can’t wait for Amazon to collapse and cause a total crisis in product availability since none of these physical stores are around anymore. On one hand, a bunch of useless stuff won’t be available anymore. On the other, it’ll be the start of the Second Great Depression and likely lead to the Federal Reserve buildings being burned to the ground. So a win win.
    Only in some bizarre libertarian doom-fantasy. Here IRL those things won’t happen and the world keeps on spinning. 
  • Reply 19 of 19
    19831983 Posts: 1,223member
    And another one bites the dust. Very sad.
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