Kmart getting rid of lego

[The_Damned]

I heard that kmart is going to be getring rid lego from their range? Has anyone else heard this? Kind of annoying if that does happen, that doesnt bode well for transformers and other big name brand toys if that is the case.

[Sam]

I haven't, and it's surprising if true - I would think that LEGO makes a large percentage of their toy sales?

[Gouki]

Where did you hear that? I really can't imagine it being true.

[KaRNiV8L PRiME]

Not really surprising if true. KMart have dropped most national brands and focused on their own home brands in recent years focussing on profit margin and price perception.

[griffin]

They are certainly turning into a "discount variety store" (which is reject shop's slogan)... with the marketing/commercials and generic product lines.

And Target are going the other way with their latest campaign targeting the high-end shopper... as if they are trying to take on Myer and DJs. But those stores are struggling more than the "lower class" stores, and Target is already in a bad shape, so this is the wrong move for them.

I remember when Target used to be the no-frills, cheap department store, and Kmart used to be the middle-class department store. In Brisbane I used to see a lot of Targets in more of the blue-collar, worker class suburbs, and Kmarts in the more middle-class suburbs... which makes many of the Targets no longer catering to their nearby demographic/residents.

[Sinnertwin]

You:ll find that it isn't just Lego that looks like being ranged out of stores.
It's interesting to note that Target are on their way to where Kmart was a few years ago, just look at their recent financials. Target just need to get back to basics and not punch above their weight.

[The_Damned]

Where did you hear that? I really can't imagine it being true.

from a guy at work whose wife had heard it from the wife of a store manager.

as griff has said and i am sure most people have noticed they are going to cheaper own house brand types of toys which is a silly move on their part as it means they will lose quite a few sale's from me and a lot of other people.

[Sutton]

All of the new range of Lego has started appearing in Kmart this week (new Friends, City, Star Wars etc) so this certainly isn't true for this product cycle at least...

[dirge]

While K-Mart can get away with "in house" branding for some things (glasses, buckets, underpants and what have you), I can't imagine dropping a big, famous well established brand like Lego. Kids will know the difference between Lego & some in house equivalent. It'd be a mistake; best leaving the in house toys to stuff like rubber balls, army men & whatnot.

[griffin]

That's true... I was at Sunnybank Kmart, and even though half the toy section was generic brands now, there was a whole AISLE of Lego - and just Lego... the other types of construction block brands were in other sections.
They may be able to make Generic brand versions of Barbie (the product and packaging looked so much like barbie) and boardgames (Hungry Hungry Dinos anyone?)... but the real demand with construction blocks is with themes or licensed brands. Generic stuff is usually just random sets.
I wonder how Hasbro and Mattel are going to deal with this surge of generic stuff, which is only happening because they are charging retailers double what they should be on their American brands. The Australian retailers finally had enough of paying more than they should, and losing customers to cheaper online purchases.

[Sutton]

That's true... I was at Sunnybank Kmart, and even though half the toy section was generic brands now, there was a whole AISLE of Lego - and just Lego... the other types of construction block brands were in other sections.
They may be able to make Generic brand versions of Barbie (the product and packaging looked so much like barbie) and boardgames (Hungry Hungry Dinos anyone?)... but the real demand with construction blocks is with themes or licensed brands. Generic stuff is usually just random sets.
I wonder how Hasbro and Mattel are going to deal with this surge of generic stuff, which is only happening because they are charging retailers double what they should be on their American brands. The Australian retailers finally had enough of paying more than they should, and losing customers to cheaper online purchases.

Interestingly enough, the current wave of Lego is slightly cheaper than it has been for the last few years (brick-for-brick). The new Star Wars Republic Gunship is probably the best useable example of this.

The last Gunship released in 2008 was $179, had 1034 pieces and weighed 2.04kg. The new Gunship released last week is still $179, has 1175 pieces and weighs 2.01kg. That's not bad for 5 years worth of inflation, and from a company outside the US where the issues of dollar-parity aren't as important. The non-licensed sets are actually quite a bit cheaper brick-for-brick (around 10%). Something that may help in explaining this is the change in packaging (the boxes used in most themes now are quite compact and small compared to what they were 5 years ago, much less a case of opening up a 'box of air' like it used to be), that would surely mean a fair reduction in the cost of freight.

Meanwhile TF deluxes are getting smaller and have gone up in price. Never mind the whole separate issue of most releases not even turning up here. I've already got my Metroplex coming from BBTS (yes, I'm part of the problem, I know! :D) but I'll be very interested to see what he sells for here later on.

*EDIT: The new Gunship is $159, so quite a bit cheaper than the last one considering it's been 5 years. I know, because I just bought one. Padme Amidala minifig!!! *swoon*