Ask a LEGO Fan

Poor selection vs High Prices

Posted in Marketplace by lfanquestions on January 6, 2010

Riley writes:

I’ve noticed that for a good year or so Toys R Us has been getting certain Lego models out on their shelves sooner than other retailers like Wal-Mart and Target. I’m interested in some of the Toy Story sets and I don’t feel inclined to pay the extra cost that Toys R Us is charging, particularly an extra $10 for Woody’s Roundup. Last week the local Toys R Us had most of the Toy Story sets but as of today Target’s and Wal-Mart’s Lego shelves are nearly empty.

I know I can mail order these, but on most sets it costs a little more to have them shipped than the sales tax. I don’t really mind waiting, just wondering why.

Thanks for you time.

Dear Riley,

Toys R Us exclusively sells toys and not general items that people need on a daily basic such as food, clothing, personal care items, etc.  Their higher than suggested retail prices are necessary to keep the company profitable.  In addition, many consumers will pay more because they can browse a wide selection of Lego in person.

The downturn in the economy has been beneficial to TLG.  Parents are looking for high quality and long lasting toys.  Demand spiked at the same time wary retailers cut back their inventories.  Stores like Walmart may only have ordered six to eight copies of Woody’s Roundup.

Eventually stores will notice how well LEGO sets are being sold and order large quantities.  Inevitably at some future point their will be a surplus of sets which will lead to sales.  This may not happen for several years.  Popularity of certain toy brands seem to be cyclical.

Sincerely,

LFan

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