SoFi Blog

Here’s Geoffrey!

Toys “R” Us closed all of its stores after filing for bankruptcy in 2018. The iconic toy store brand ultimately failed as a business after taking on a substantial amount of debt during a buyout that took the company private.

Now the Toys “R” Us brand is making a comeback through a partnership with Macy’s (M). Toy stores ranging in size will open inside existing Macy’s over the coming months, offering unique experiences such as photo opps with a life-sized Geoffrey the giraffe and toy demonstration tables.

Failure to Relaunch

Since Toys “R” Us first shuttered its doors several years ago, several unsuccessful comeback attempts have been made. The Macy’s partnership came to be after WHP Global bought the Toys “R” Us brand from Tru Kids Inc., which originally acquired it in a liquidation sale. Tru Kids Inc. had opened some stores in Texas and New Jersey, but they were closed in early 2021 amid the pandemic.

Macy’s agreed to sell Toys “R” Us products on its website just under a year ago, which was around the time when ToysRUs.com also started selling items. Macy’s also opened 400 “shops-within-shops” at its US department stores.

Competitive Toy Market

The Toys “R” Us partnership has benefited Macy’s. Within its first-quarter earnings report, Macy’s said its toy sales were 15% higher than the comparable period, dating back to before the Toys “R” Us deal.

It’s been a relatively strong 2022 for Macy’s, which has outperformed its competitors, such as big-box retailers Target (TGT) and Walmart (WMT). For many American families, going to Toys “R” Us was a rite of passage around the holidays. Macy’s hopes that tradition can continue — within its own doors.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22072002

Delinquencies Up

Over the last few months, market observers have noted an uptick in late or missed payments and credit card delinquencies. Pacific Gas & Electric (PCG) reported 1.4 million customers were late paying their bills last year — a greater than 50% increase from 2020. Both JPMorgan Chase (JPM) and Wells Fargo (WFC) noted an increase in credit card and auto-loan delinquencies.

While industry analysts acknowledge the payments shortfall in part reflects an affordability issue, others wonder if the many negative issues weighing on people’s minds are leaving them distracted. With the ongoing threat of COVID-19, stock market declines, and soaring inflation, Americans have a lot to worry about.

Bad Consequences

Financial advisors are warning clients of the perils of neglecting financial responsibilities. Missing credit card payments can adversely affect credit scores and result in both late charges and higher interest rates on debt. Failing to keep an eye on one’s investment portfolio can also trigger a financial cost in the form of higher taxes due, suboptimal portfolio performance, or both.

Troubling headlines can prompt anxiety and a crisis mentality that makes it easy to forget everyday tasks like paying the utility company. However, there are ways to keep the bills paid and achieve peace of mind amid the noise of external events.

Tips and Tricks

Behavioral psychologists and advisors have a few tips and tricks that can make it easier for you to stay on top of your financial affairs. The method that works best depends on the individual. For some, writing down what is due on what date may work. For others, automating payments can remove the need to remember all those due dates. Another idea is to set up a regular schedule for bill payments, perhaps bi-weekly, with each month’s bills paid over two sessions.

Putting a recurring appointment in your calendar for an investment portfolio check in can help to ensure your investments aren’t neglected. Offloading the task to a money manager can also ensure you stay on track, provided that fits your finances.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

SOSS22072003

Delinquencies are rising as it seems more Americans are forgetting to manage their personal finances amid external distractions.