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In lugnet.mediawatch, Larry Pieniazek wrote:
> In lugnet.mediawatch, Arne Lykke Nielsen wrote:
> > Hi,
> >
> > New press release:
> >
> > http://www.lego.com/eng/info/default.asp?page=pressdetail&contentid=4805&countrycode=2057&yearcode=&archive=false
> >
> > Look at bullet 5: It seems there will be another balance between TLC's own
> > products and the licenced prodocts - maybe we could get town back as a line of
> > its own?!?
>
> That would be nice.
>
> The phrase I find worrisome is this one:
>
> "Later in the year the LEGO Company will be evaluating the role out strategy of
> the company’s own brand retail stores."
>
> I'm hoping these stores do well, because I like shopping there, but I think they
> may have a small problem. They sell their stuff at MSRP, so they get undercut by
> discounters, but if they were to sell below MSRP, they might be causing "channel
> friction".
>
> So I'll be curious to see what the evaluation results in. More rollouts faster,
> or less?
I think there's another point that is clear if you read between the lines. I
suspect that the vast majority of TLC's revenue comes from sales to retail
outlets (TRU, Walmart, Target, etc.). It would appear that retail channel is
not making money selling LEGO products. Based on the list of actions it's also
clear that these retail channels feel that the LEGO Company needs to do a much
better job in supporting them (better flexibility, inventory management, etc).
I think they would see the brand retail stores as a competitor or a distraction.
This might force TLC to "go slow" on brand retail so as to appease their main
distribution channel.
Other than PAB, I haven't been impressed with the brand retail stores. Perhaps
they can find a way to do PAB through specialty "boutique" retailers (like
Learning Express)?
Andy
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Message has 3 Replies:
 | | Re: Press release: job cuts etc.
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| "Andy Evans" <evansar@yahoo.com> wrote in message news:HuoBqr.15oL@lugnet.com... (...) I (...) is (...) also (...) much (...) etc). (...) distraction. (...) main (...) Perhaps (...) It's been a few years since I worked in a toy shop last, so things (...) (21 years ago, 16-Mar-04, to lugnet.mediawatch, lugnet.general)
| | | Re: Press release: job cuts etc.
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| (...) But we Do have town back! World city is the new town. While it may not be quite the same as what we had as kids, it is town nontheless. Police, Fire, and trains all fit into that catagory. I doubt we will see the other things related to town (...) (21 years ago, 16-Mar-04, to lugnet.mediawatch, lugnet.general) !
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Message is in Reply To:
| | Re: Press release: job cuts etc.
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| (...) That would be nice. The phrase I find worrisome is this one: "Later in the year the LEGO Company will be evaluating the role out strategy of the company’s own brand retail stores." I'm hoping these stores do well, because I like shopping (...) (21 years ago, 16-Mar-04, to lugnet.mediawatch, lugnet.general)
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