Toys ‘R’ Us CEO Jerry Storch is tired of hearing about how Amazon and “showrooming” are driving business into the ground.
While Toys ‘R’ Us sales are down this year, it’s not because consumers are using the store to as a “showroom” to look at product they later order from Amazon, Storch told us at an event at the store’s NYC flagship today.
The real reason why Toys ‘R’ Us sales are down is because video games are flopping, down 30 per cent in the past year.
“There just hasn’t been much excitement in that category and it drags the rest of sales down,” Storch said. “It’s not that the internet is taking away our business, which is a popular story.”
Toys ‘R’ Us actually leads in market share and has almost double the customers that Amazon does, according to data by NPD Group.
Storch said the decline in video game sales can be attributed to a lack of new products or innovations.
But that will change soon with the release of Nintendo’s long-awaited Wii U. How the Wii U sells at holiday will have big implications for the video game industry.
For now, Toys ‘R’ Us is focusing on getting exclusive products that no one else has.
“If you have exciting products, people are going to buy them,” Storch said. “That’s the bottom line.”
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