Secrets of Toys R Us Liquidation Sales
Toys R Us is closing all its stores across the United States, thanks to financial troubles and steep competition from companies like Amazon and Walmart. It's the end of the era for the toy store chain, and it's the beginning of a series of liquidation sales at hundreds of locations about the country.
USA Today reports that Toys R Us will begin its liquidation sales on Thursday, March 22, at most of its stores across the country, offering massive markdowns on its merchandise. Those sales are expected to wrap up by the end of June. Some stores may close before then if inventory sells out first.
If you plan on checking out the discounts, there's a lot you need to know to get the best deals, and to make smart decisions with your money, experts say. Here's what you should know before you shop.
1. Use your gift cards and coupons. Now.
If you have any unused gift cards, registry credits, or coupons, you have to use them within 30 days, or they'll be completely useless. But Business Insider notes that pregnant women expecting "endless earnings" credit at Babies R Us after their due date might be out of luck if their due date is after the stores close.
2. Go early for better options, but go late for deeper discounts.
Chuck Tatelbaum, chair of the Creditors Rights and Bankruptcy division and a director with the Tripp Scott law firm, says that in most cases, once a product's gone, it's gone. "So you reach a point very quickly that you get diminishing returns," he says. "There may be greater discounts [later], but the inventory will be so sparse you will be buying toys that kids' don't want." So if you're looking for sales, go later, but you might not get deals on popular toys.
3. Don't shop online, and inspect before you buy.
David Wander, partner and head of bankruptcy department at Davidoff, Hutcher & Citron LLP, notes that buying in a liquidation sale means no returns. "You've got to check the product, open the box, make sure everything is there, plus any accessories, warranty card, because no returns are allowed," he says. Tatelbaum also warns against buying products online for this reason: if the item is defective, you might be stuck. And to protect yourself in worst case scenarios, Wander advises paying by credit card, so you can dispute the charge if there's a problem.
4. Make sure you do your local research.
Liquidation sales start on a location by location basis, and the inventory is going to be much different from store to store. Tatelbaum says that in some cases of retail liquidations, companies will move inventory from two to three underperforming stores and move them to a more popular store to get more foot traffic. So be sure to call your local store before you go to make sure they're open and offering discounts. Wander says you can search online to see what company is running the liquidation, then give the company a call to get the inside scoop about what's on sale where.
5. Be nice to employees.
Think about it: All the workers you will encounter at Toys R Us are about to lose their jobs. Would you have a giant smile on your face at work if you knew your time there was limited? So don't get too steamed if the checkout clerk takes a little longer than usual. The best workers there may have already found other jobs, too. "The customer service operation is going to be affected as well, because good people are going to leave," Tatelbaum says. So be patient with the staff and you'll get the deals you're looking for.
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