Kids don't want toys anymore, electronics, next thing is kids bikes, parents love these babysitters, cry when they turn into crazies. Just an old mans observation.
Toys R Us, A Thing Of The Past?
- Thread starter Chasing Embers
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My oldest is training in Retail Mngmt, and we were talking about this the other night. Online wholesalers were killing retail, so retailers created their own websites to compete. But, the problem is that if there is a B&M store, people will make returns to the B&M over shipping returns back to the online address. This is killing the B&M's, but it is what makes them competitive with the big sites like Amazon. You want to buy shoes, but are weary of the sizes, because different brands, different sizes fit different people. So, you choose (lets say) JC Penny, because you know that if you can just drive over and make a return, it's easier than packing a box and waiting in line at the Post Office (in their perceptions). Besides, going to a store is always better than going to a cold sterile PO.
But, by accepting online returns easily, this increases the return rate. People choose you for this, correct? So, the B&M's take the brunt of returns. JC Penny reported exponentially more returns in the last few years. They then take a loss at the store on two ends, buying back returns which is buying a back a product they can no longer sell. Then the clothes are bought by other companies after 14 months at pennies on the dollar. Loss/loss.
We will see more and more retail closing up soon. It's just the way of things. The expense of paying commercial utilities is ten-fold that of residential, and the expense of the space is increasing dramatically as well. It's weird though. Nothing is driving up the cost of commercial space, since nothing is going back into their places. We end up with empty malls across the country, caused exclusively by greedy land owners. Their greed leads them to selling these malls at bargain basement prices back to communities to make new "things" out of them, cheaper things.
That's the brunt of what I gather the problem is anyways. There's always more things contributing to an issue though.
But, by accepting online returns easily, this increases the return rate. People choose you for this, correct? So, the B&M's take the brunt of returns. JC Penny reported exponentially more returns in the last few years. They then take a loss at the store on two ends, buying back returns which is buying a back a product they can no longer sell. Then the clothes are bought by other companies after 14 months at pennies on the dollar. Loss/loss.
We will see more and more retail closing up soon. It's just the way of things. The expense of paying commercial utilities is ten-fold that of residential, and the expense of the space is increasing dramatically as well. It's weird though. Nothing is driving up the cost of commercial space, since nothing is going back into their places. We end up with empty malls across the country, caused exclusively by greedy land owners. Their greed leads them to selling these malls at bargain basement prices back to communities to make new "things" out of them, cheaper things.
That's the brunt of what I gather the problem is anyways. There's always more things contributing to an issue though.
Just read an article that stores, nameing just one Best Buy are useing third party people to police returns and that they lump good customers without cause, one man bought over 4K of products and got canned for trying to return IPhone cases, had bought a handful so his people could choose, then tried to return the ones that weren't chosen. Third party people are not wanting to answer questions, something sinester in that and some loyal customers are chucking their patronage at that store. Wife says Walmart has the best return policy, she should know she's a shopaholic.
We like an artisan bakery in town opened by young people who work like crazy producing "real" bread and a variety of other baked goods. They opened in a reclaimed storefront, and the whole area is being rebuilt. Several specialty shops are opening, and there are some upscale residential buildings going in. This area looks like it will prosper while some other boom-time strip malls will wither. I think the fad-word nimble applies, adapting quickly and accurately to customer trends. It would drive me crazy, but when it works, it is profitable. One major mall has been hobbling along for decades now as a discount mall. Some stores are really like flea markets. The merchandise may be new, but it has been rescued from warehouses somewhere.
MSO, those discount stores are buying the merchandise from the big box retailers under contract for pennies on the dollar after 14 months on the shelves. And, as the big boxes close up, the discount stores won't have anything to stock their stores. Also, after a certain amount of time in a discount store, it then is bought by others in gross to sell at actual flea markets and trade days. Trickle down?
In the back of many of these big boxes, they have literally "bailed" the clothes like cotton and put them on flats.
In the back of many of these big boxes, they have literally "bailed" the clothes like cotton and put them on flats.
Cosmic, interesting. I'm near a Marshall's, and stop by when I'm over that way; some days nothing, others, just what I'm looking for. Likewise, I've noticed some of my best fitting, most durable cotton short sleeved shirts (with a breast pocket for sunglasses and pen) I've bought at Walmart at the end of the season, for almost nothing. I admit, I sometimes splurge on a catalog item (though often on seasonal discount) but the Walmart items wear like iron, long after some namey brands don't. If you buy traditional designs, they last for eons.
I miss the old American Liberty brand that they used to carry. I only really buy my workout clothes and coveralls from WalMart. But, my wife is an expert shopper. She has the game down. She uses double discount days and opens a new credit account with each visit. She can get me $1000 in name brands for $100 sometimes (60% and then 60% and then 20% for opening a new line of credit). And, the way she does the credits, we have AWESOME credit scores. However, I always wonder how these stores make any money.
I used to shop Korvette years ago in MI. You had a color code on each vinyl lp, and had to look up on the wall to see what the current price was. That shop is loooong gone.
One of my favorite childhood memories was my brother taking me to Toys R Us when I was about 10 (1973) on my birthday...and told me I could pick out a toy. I'm still thankful to him for that, I felt like one special little brother.
We took our kids to Toys R Us as they were growing up in the 1990's...and I don't know that I've been back since. When we buy a toy for someone's kid...it's just too easy to find it cheaper on Amazon...and have it on our doorstep 2 days later with free shipping.
http://business.financialpost.com/news/retail-marketing/toys-r-us-canada-carries-on-business-as-usual-amid-reports-of-u-s-liquidation
Ironically some of these classic American retailers are now becoming status symbols of the Canadian economy.
I'm guessing that's still mostly a matter of having 1/10th the population with nearly twice as much land though.
Ironically some of these classic American retailers are now becoming status symbols of the Canadian economy.
I'm guessing that's still mostly a matter of having 1/10th the population with nearly twice as much land though.
Maybe the writing was already on the wall for Toys R Us but Bain Capital buying them and loading them up with debt sure didn't help.
Interestingly, this is the same playbook Bain used on KB Toys which also went bankrupt and shut down soon after.
Interestingly, this is the same playbook Bain used on KB Toys which also went bankrupt and shut down soon after.
Then you have stores like Steinmart, T.J. Maxx, Marshall's and Burkes that all seemed to be be owned by the same conglomeration. They all sell items cheaper than you can find at stores like Dillards and Macy with each one being a little lower on the food chain than the others. You go walk around them and even the layouts are similar.
Kinda funny on a site that only talks about which online store is cheapest while talking about going to the local bm to buy pipe cleaners to "keep it local" and are so sad when they go under. Get used to it folks click and ship is the way of the future. No fault of your own.
Kids are just the mirrors of their parents. It is not the kids but the parents who want their kids to want electronics. Kids want everything actually, give them a brick and it will become a car wheel in a second in their hands.
I can confirm this 100%.
The article doesn't mention anything about Babies R Us. I don't know if that's a Canada-only thing or not. I'm assuming that if the toy shop closes, the baby stuff store will close as well.
The one I always go to have both stores in one building as separate departments. I would imagine it would apply to them as well.
Bath, kitchen, and auto parts chains seem to be over-extended to me. Among others. There seems to be some consolidation in office supplies as well. Maybe nail salons and massage therapy businesses in some suburban areas. Coffee shops for sure. Some of the chain restaurants, where young part time employees cook out of loose leaf instruction notebooks, also seem to be closing some sites. Many of these seem to have had more investment capital than know-how. Real professional chefs, cooks, and bartenders are rare and underpaid, so there are many under-trained who simply don't know their business. When you encounter a real professional wait person in a restaurant, you don't know what's happening. I remember the middle aged and older waiters at Berghoff's, a German restaurant in Chicago, who were consummate pros, nothing like 'em this side of Paris and maybe Berlin. If you watched their faces closely, you could tell whether you were ordering the best entrees or not, and change your order accordingly.
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