Is Lego in trouble?

[Mithrandir]

So over the weekend, I had a kick to buy some lego sets; I was impatient and wanted them right away, so I checked out all the stores in my area.

The results were rather disheartening.

Target had about one section of an isle for lego's, only Bionicle, Harry Potter, Racers, and Star Wars sets. Not even the good ones either, they were all tiny.

In K-Mart, I asked for the Lego section because I couldn't seem to find any, and the guy took me over to a shelf filled with Megabloks. I said "No, I want Lego" and he said "This is all we have". :\

Wal*Mart was pretty much the same story as Target, except it had way more Bionicle.

KB Toys was pathetic, they had the top 2 shelves of a section, only Bionicle and tiny Racers sets.

Media Play used to have a decent collection (almost every small-medium non-technic set), but unfortunately they went out of business.

I saved the best for last and went to Toys'R'Us (which is closing in a few months!!!), and found the best selection of the day, but still pathetically pale in comparison to the olden days.

TRU had vikings, star wars, bionicle, three technic sets, 2 designer sets, all the batman, and a few racers, and some World City sets, and that was pretty much it. Almost no big sets whatsoever (the only big one was the viking fortress). It took up about 8 sections of an aisle (4 sections, both sides). By comparison, Megabloks had 10 sections (5 sections, both sides).

Now I remember, as a kid, TRU used to have an entire freaking TWO AISLES full of legos, every big set that you could imagine. A Dozen copies of the monorail sets here, a huge space display there, a train display, town, pirates, castle, duplo, everything.

What the hell happened?

When our TRU closes, who's going to sell Lego in this area? Our only option will be online... and while that's okay for us enthusiasts who pay attention to what sets are available, most parents won't really have any idea, and will buy whatever is available in the toy sections of whatever superstore they shop at.

I think Lego is in trouble.

[MattZitron]

I went to a Toys R Us the other day and the Lego display wasn't that hot either.

Only slightly more space than the Megablocks shelves.

[Kikuichimonji]

Lego has plenty of shelve space over here. And I've never seen Megablocks in stores either. So I'd say that over here they're certainly not in trouble.

[gylman]

I would say that in TRU and our department stores Lego has significantly more shelf space than megabloks, but it definitely does not have the shelf space that it did 5 years.

On the other hand, Lego has less product lines than 5 years ago, and what they do have seems to turn over very quickly in most cases than I recall from years past. I suspect they have having a hard time meeting demand for starwars sets, KK sets, some Harry Potter sets, some designer sets.

Lego has totally disappeared from the discount stores this year in Toronto. I used to buy almost all my sets from discount stores. Now it is totally barren. To me that means they are selling well, and don't need to dump sets for 1/2 price. Bad for me, good for TLC.

In the long run, the more stock Lego sells through S@H the better, but of course as you point out Gandalf you need the eye-candy to catch the parents who know nothing.

Keep in mind that last year was the best year TLC had in a decade or longer.

[Skinny Boy]

I don't think Lego is in trouble here. I usually go to my nearest Smyths. They have a 1/4 aisle of lego which is all pretty good.

Toymaster is my other option. Not great but good enough.

My other Smyths has a nice city display and some good sets.

Oh and none of those shops sell Megablocks, I think. :-)

[snefroe]

they just have problems with distributing lego sets. Some shops in my neighbourhood ordered lego last summer, they're still waiting for it. in fact, some sets they ordered will probably not be available anymore...

one shopkeeper told me they get a message from lego on a regular basis saying they can't deliver the goods and the shopkeeper has to repeat the order to get it back into the system. It's the 8th time now that they've repeated the order...

last week, they got a package from lego.... it had exactly 8 sets on it... now they'll probably have to wait another 6 months or so for another delivery...

according to the shopkeeper it's because: 1) production of lego is a mess,2) they're transporting lego from denmark to belgium thru the UK in order to save money, but the quality of the line clearly sucks...

[Legoman]

well lego has never been to big over here like it used to be 5 shevles at my local wherehouse and 2 for mega blocks now lego has 11 shevles and megablocks has 1 so over here i think lego is doing better so over here things are going great

[xenologer]

hmmmh

my TRU has an annoying lack of smaller City oriented sets as well as a lack of Technic

no Fire Car, Doctors Car, Mini Digger, Police Car, none of the nice small sets...

lots of bigger things that don't move though

[snefroe]

hmmmh

my TRU has an annoying lack of smaller City oriented sets as well as a lack of Technic

no Fire Car, Doctors Car, Mini Digger, Police Car, none of the nice small sets...

lots of bigger things that don't move though

that may be part of tru's policy. they very often don't take sets that they may not be able to sell in the short run. but i've also heard that lego doesn't allow shops to sell every set of the catalogue.

[xenologer]

??not sell in the short run??

what do you mean?

I would think that nice little City additions like that would sell like hotcakes. Faster than the big expensive playsets that kids would only recieve for birthdays and christmas.

[optimus-convoy]

I've noticed the same around my area. Places like wal-mart have less than half an isle with only the more popular Bionicle, Exo-force, Star Wars and possibly more Megabloks. Toys R Us usually has a nice selection and thankfully isn't closing.

[prateek]

Yo, stores only restock every few months or if you're lucky, they'll restock every few weeks, and if you can't find lego, that means it is selling fast and you don't get there in time or sumtin so that means TLC is doing very good *y*

[Brick Miner]

what i am seeing is that the shelves ARE stocked, they are stocked VERY WELL... just not with LEGO... i am seeing MEGABLOCKS and other non-buidling toys.

if LEGO toys were selling fast, too fast to keep on the shelves, we would be seeing empty shelves... which is not the case.

LEGO is doing terrible, that is a fact...

In 2003, the LEGO Group faced a budget deficit of 1.4 billion DKK (220 million USD at then current exchange rates), causing president Poul Plougmann to be fired and Kjeld Kirk Kristiansen to take over. In the following year, almost one thousand employees were fired, due to budget cuts.

However, in October, 2004, as the LEGO Group faced an even larger deficit, Kristiansen once again stepped down as president, while placing 800,000 DKK of his private funds in the company.

Future plans for getting the company back on track include selling the LEGOLAND entertainment parks to another of the Kristansen family held companies and reducing its workforce. Moving production of its bricks to China like so many toy companies has also been mooted but is unlikely to occur within the next 5 years.

In 2005, the LEGO Group reported a 2004 net loss of DKK 1.9 billion on a total turnover, including LEGO's amusement parks, of DKK 7,934 billion.

i got this off a information news site somewhere.

- brick miner

[Jipay]

they just have problems with distributing lego sets. Some shops in my neighbourhood ordered lego last summer, they're still waiting for it. in fact, some sets they ordered will probably not be available anymore...

one shopkeeper told me they get a message from lego on a regular basis saying they can't deliver the goods and the shopkeeper has to repeat the order to get it back into the system. It's the 8th time now that they've repeated the order...

last week, they got a package from lego.... it had exactly 8 sets on it... now they'll probably have to wait another 6 months or so for another delivery...

according to the shopkeeper it's because: 1) production of lego is a mess,2) they're transporting lego from denmark to belgium thru the UK in order to save money, but the quality of the line clearly sucks...

Nah that's funny. My local lego dealer told me they don't even know what Lego is bringing to them. hey oreder stuff but never get them delivered. hence the reduced space for TLC products here. They disappeared from most of the shops >:-(

[snefroe]

??not sell in the short run??

what do you mean?

I would think that nice little City additions like that would sell like hotcakes. Faster than the big expensive playsets that kids would only recieve for birthdays and christmas.

it's true that parents, family members,... are always looking for small 5-10

[phoinix]

playmobil is doing great here in greece..wish i could say that for lego as well..

playmobil has a whole section at my local toy store and they always have them at the shops window..but u dont see any lego there either..Megablocks takes up almost the same space as lego does..parents dont even know the difference between them.."its ok as long as its bricks" so they dont pay attention..The bigger sets are too ecxpensive so we have a LOT of harry potter older sets but the price is still the same as it was 3 years ago when they were new..we also have lots of racers and technic sets which sell pretty well but only the smaller sets..the huge once that cost over 100 euro are going to be there for a long time if they dont have a sale soon..

So the conclusion for greece marketers is no more HP and no huge sets..small sets sell good i guess..the doctors car the ambulance and the airport firetruck left the shelves pretty quick...(is my spelling like REAlly bad??)

the lego clothes store just closed recently wasnt doing well either..

i think what the parents see is very ecxpensive toys when they can get smth a lot cheeper and their kid will still enjoy it..nowadays kids change their minds pretty easily regarding to what toy they like and dislike..its all about whats hip and whats on the movies and tv..lego did very well with SW but i dont think they should base their marketing on movies..

Lego is a toy to keep for a loooong time (still got mine which i have been collecting for 20 years!!)

so marketers should turn to the kids who can apretiate it!!making more designer more creator and more basic sets for the children to discover the world with!even more educational sets like the dacta line (never so that in greece foun it on the net)

so i guess lego is not doing well in greece or in cyprus marketers turn to cheeper more economical toys to make a good profit from it..

hope lego isnt in any trouble thow..i guess they learned there lesson..back in 2000 they had terrible products!!but i guess they are begining to turn to more basic stuff..hope to see a lot more like that in the future..

:-) phoinix

[snefroe]

two things:

lego sales depend upon the buying power of the customers, so lego is a lot more expensive for people in Greece, than for instance, germans, french, dutch or belgians, simply because our wages are higher. that makes it more interesting for lego to focus on western europe...

lego may not have a long standing tradition of trading in some countries. they may be relatively newcomers in southern europe. i don't expect to find much lego in portugal, italy or spain either, except for the big cities

[phoinix]

i was able to find every set in the catalogue during the 1980s in cyprus..

now a couple of stores that used to sell lego there dont anymore..

there are only two remaining toy stores that sell lego in cyprus..at list in the city were i live.(i am a cypriot but i live in greece now).and the wages in cyprus are deffinitely higher than in greece..!

another problem is that we cant order from lego.com so is lego a company for a few people?

what about the rest of us that love lego?

is lego cutting back ecxpences by exporting less and less in some countries?

.my local stores here in greece ordered there lego ages ago and still they dont have the full line (and they never will)

its ok to cut back if u r not doing well in some places but what happens with the fans?shouldnt they find another way to fill our needs?

i could go on ordering from e-bay but i dont fell comfortable with online shopping...and what if u dont have a credit-card?

getting lego gets more and more difficult around here! |-/ |-/

(makes me feel like a second-class customer)

:-) phoinix

[gylman]

is lego cutting back ecxpences by exporting less and less in some countries?

.my local stores here in greece ordered there lego ages ago and still they dont have the full line (and they never will)

:-) phoinix

You are probably right about that.

I would note that the "sweet deals" on Shop@Home have also decreased dramatically compared to last year. I have bought almost NOTHING for half price in the last 2-3 months, which is very unusual for me. I take this as a sign that their inventory is low, the sets they have made are selling well, and they don't need to dump them at half off.

Bad for me. Good for Lego.

[hewkii9]

As long as Lego stays alive, MegaBullloks sucks, and Bionicle and X-Pods stay, I'm happy.

Every line goes through a crisis. Lego has been around for 50 years, it's unfortunate we're living the crisis.

I see no problem with Lego selling film sets. If they are related to big movies, the sets will sell higher. An awesome promo would be giving away, say, a free Dolores Umbridge minifig with a Harry Potter and the Order of the Phoenix ticket. Plus it would be awesome for LEGO fans who found them on the floor of the theatre. Free minifigs!

[gusmoore17]

Well, here in Mexico the situation is likely the same as the guy who make this poll, but the difference is that there are only two ways you can find Lego sets: in a toy store called "Happy Toys" or at department stores. In both the Lego Sets are freaking expensive (almost three times they real price at U. S.) and Lego Mexico S. A. de C. V. (which is the representative corporation in the country) only imports Harry Potter, Bionicle and Star Wars sets, but only the medium ones....this is very disapointing *sing*

How do I get the Vikings, City, KK, Star Wars BIG sets, Exo Force, Orient and Adventurers, and so many other wonderful ones??? The answear is easy: friends who travel to U. S. and Ebay!!!!!!

[Mister Phes]

"The LEGO Company has been in big trouble since the mid 90's... Sadly they lost their touch just over 10 years ago and have never fully recovered since" said the over opinionated Mister Phes.

[xwingyoda]

For our "over opinionated" Phes, TLC was in trouble the day they ended our beloved Pirates X-D :-P

*yoda*

[snefroe]

As long as Lego stays alive, MegaBullloks sucks, and Bionicle and X-Pods stay, I'm happy.

Every line goes through a crisis. Lego has been around for 50 years, it's unfortunate we're living the crisis.

I see no problem with Lego selling film sets. If they are related to big movies, the sets will sell higher.

to think that licensed products will sell better is an illusion. i know exo force is selling very very well, and there's no license at all. Price has simply gone down, leading to more sales. Same with Vikings, same with KK2. bionicle sold very well over the years, even tho sales of the theme are really crashing down for the moment, there was no license involved either.

you're saying lego will live on, well they came pretty close to going under last year. They only survived because of drastic decisions, like giving up the crown jewels... Even lego has to proove herself day after day in order to stay in business.

the question that's on my mind right now is where's the long term strategy? What lego themes will assure continuity of lego's economic activity? i don't expect exo force to stay around for very long. we've lost the vikings already (only two sets), city is a big question for the moment, batman and sponge won't be around for many years either. right now, the only minifig theme that leads to success is sw...

What's the big deal, you say? if lego only survives on short term themes, like exo or vikings, they will be dependant on short term success. every theme has to be a hit, and there's no loyal fan base. people may like exo but might just hate the next best thing... Lego needs a solid, non-licensed theme that assures good sales thru out the years

[Mithrandir]

"The LEGO Company has been in big trouble since the mid 90's... Sadly they lost their touch just over 10 years ago and have never fully recovered since" said the over opinionated Mister Phes.

Last year I would have agreed, but from what I see of the new stuff comming out, I think they've gotten their mojo back.

First off:

* Vikings was a huge start in the right direction. Sure, it can't replace pirates, but it's a start at least!

* Technic. From 1996 to 2004, technic was almost completely crap, with the occasional gem here and there (F1 racers, super street sensation). Now all of a sudden, 2005 brings us the Street Bike, easily my favourite set ever, the mobile crane, and now it looks like the 2006 sets will be even better!

* Batman. Nanananananananananananananana BATMAN! Need I say more? :)

* Okay, I'll say more. The minute I put together the Batwing, all I could think of was... "My balloons. Those are my balloons! He stole my balloons!!! Why didn't anyone tell me he had one of those... things?!! Bob, gun. *BANG*"

* Designer/Creator. I think this takes Lego in a huge step forward, and brings it much closer to the original concept of Lego. They give you tons of pieces, cheaply priced, lots of instructions, and a bunch of ideas to help you build your own stuff. Granted, they use a lot more than just the "classic" pieces, but that's evolution for you. I bought Gear Grinders, and let me tell you, that small set deserves an 11 out of 10 rating. (I wish it came in blue though, grr).

Castle: I kind of miss the days of the Black Falcon's Fortress, and I thought the whole "Knights of the Pastel Table" thing was just... goofy. But it looks like they're heading away from the pastel colors. Vladeks castle was really cool (I was disappointed it was basically just a castle front, but that's what Lego is all about, being able to build it how you want!).

So in general, I really like the way the sets are heading.

Granted, there are a few things that concern me. I'm not a huge fan of the stuff like Exo-Force (I bought the Sonic Phantom for the space-type-parts and the huge fans), and I really wish they would bring back the Space theme (Star Wars does NOT count; I want stuff like Blacktron, Space Police, Ice Planet), and I'm a little wary of the new Train system (anyone notice how ALL the old train stuff is on sale on S@H this week? Are they discontinuing it all ?!). Bionicle was cool at first (I actually got back into Lego because of a Bionicle set I got for $4), but it kind of wore off after a while. There's really only so much you can do with all those ball joints.

The new City, I can go either way on. On one hand, the sets look spectacular, and brings back memories of the olden days. But on the other hand, those freakin HUGE wing pieces and nose pieces on the airplanes bug the heck out of me. I mean, there's no excuse for those wings. They should have split them up into at LEAST 2 pieces, so you can make a variable-width plane, or better yet, 4-6 pieces so you could make variable-sized wings! Or heck, why not use any of the many existing wing-type pieces? Worked just fine for the Batwing. The nose cone doesn't bother me as much; I saw someone make a freaking bullet train out of it, so that made me realise that no matter what, someone will find another use for any special part, but still...

So anyways. In general, I think Lego is headed towards a positive direction; I'm just worried that many retail stores are going to sabotage it by not carrying enough.