The rise of the Megacorporations and the fall of Toy R Us

History is happening right before our eyes but I don't think a lot of people realize it.
The final nail in the coffin will be driverless cars.

I was shopping for a simple waterproof phone cover/pouch. I made an effort to shop at local stores. All my local stores had them for
$20 or more. I thought that was a lot for a piece of plastic. I came home and looked at Amazon , $7.00, now here is the even more shocking part, one of the stores that I physically went to, the online price was $6, for the same item. Yes, $14 less than the instore price. (Yes I'm sure they would price match, but that is not what i'm talking about) So here is how this plays out. It is obvious that people aren't going to pay double or triple the price. What does happen, is people go to the store, and look at the item in person and then buy it online. This is exactly why Toy R Us is closing, Claire's is closing and many more will follow. It is just too easy to get the same items online for a much reduced price. Right now price is king, and we are all falling for it. For those of us old enough, this is how Mcdonalds erased out a lot of mom and pop burger joints way back when.

A side note on Toys R Us, many years ago they would have a hot toy, parents would bring their kids in and get it, and probably buy a few other items. A fews years after people realized those toys were a cash cow, would go in and buy up all the hot items and sell them online, the ones that didn't sell they would return. Wash and repeat. Parents and kids would go in and they would never have the hot items and the would get frustrated with the toy store and not come back as it was easier to get it online.

Fast forward a few years, more and more physical stores closes. They are pushing hard for online grocery, online toiletries, online prescriptions they want you to buy every single item you can online. I see two really big problems with this. It will make it easier to stop delivery of crucial goods, 2; the companies that lead will be able to raise prices significantly when there is no local competition. I've already seen this in some areas of Amazon. The price to deliver those goods is going to go up across the board. I've sold stuff online since the early 90's and the cost to ship items has gone up dramatically. Amazon has a thing called Amazon locker, where they want you to come get your stuff, so pretty soon, not only will the price be higher, but they want you to pick it up too or pay higher delivery costs.

Have you noticed more and more stores are shying away from actual workers and going to self checkout. Pretty soon you'll send your driverless car to a hub to pick up your fast food from a robot, then to an Amazon hub, then to the pharmacy for your medicine, then pick up your kid from school. Although this new technology will create some jobs, just think how many it will eliminate.

I am old fashioned, but I say plant a garden, learn how to make things, read up on natural medince, learn how to survive as if all the stores closed down, just in case!

a reply to: JAGStorm


Toys'R'Us failed because their business model did not change with the times. They easily could have adapted to the threats in their sector and continued to thrive. Nothing is eternal which is why we don't have horses delivering the mail and steam locomotives hauling intermodal containers.

It will be awhile before we see driverless cars....

UBER Halts Driverless Testing After Pedestrian Death

Tempe, Arizona police report that a self-driving Uber vehicle was in autonomous mode when it was involved in a deadly crash overnight. As ABC15 reports, the crash occurred near Mill Avenue and Curry Road early Monday morning. The Uber vehicle was reportedly headed northbound when a woman walking outside of the crosswalk was struck. The woman was taken to the hospital where she died from her injuries. Tempe Police says the vehicle was in autonomous mode at the time of the crash and a vehicle operator was also behind the wheel.

Driverless vehicles are good in theory, but can't account for the stupidity of man. Only another human can do that... sounds like the woman wasn't in a cross walk...

Back to the rest of your post... Yes, there are some retail stores that are going to get crushed. However, there are plenty that are surviving. What is ironic is that many of the smaller mom & pop stores are doing ok once they figure out how to offer something unique that can't be duplicated on line. Remember when Amazon killed all the book stores? Now pretty much every town/small city has a local book store doing well... not as big as Barnes & Nobles/Borders but recreates that special bookstore feel with coffee shop, etc and knowledgable staff.

I do order some things off Amazon, but I also tend to favor spending my money with local merchants EVEN IF IT IS MORE EXPENSIVE because I want my local guy to stay in business. I go out of my way to ensure I am patronizing the small businesses in my community.

Toys R Us was killed because they were acquired in an LBO private equity deal that gave them too much debt. I also think it wasn't so much Amazon, but people's taste in toys changed. I don't think parent's buy toys to the same degree they did when I was a kid in the 80s. Now it is all about wooden and more educational toys. I mean, I buy my kid a few things, but certainly not to the degree my parent's bought me GI Joe, etc.

Kids want media, too. SO parents spend money on media, and the licensed material that goes with it. Back in the 90's and early 2000's, this meant mass marketed power rangers stuff. Today, its paw patrol, who is much more tight on licensing.

Anyway, I think Toys R Us suffered from a bad business model that didn't adapt to their customer base. Kids are buying electronic stuff today like apps and credits to use within said apps. Or DVD's and apps that go with the DVD's.

originally posted by: JAGStorm
History is happening right before our eyes but I don't think a lot of people realize it.
The final nail in the coffin will be driverless cars.

I was shopping for a simple waterproof phone cover/pouch. I made an effort to shop at local stores. All my local stores had them for
$20 or more. I thought that was a lot for a piece of plastic. I came home and looked at Amazon , $7.00, now here is the even more shocking part, one of the stores that I physically went to, the online price was $6, for the same item. Yes, $14 less than the instore price. (Yes I'm sure they would price match, but that is not what i'm talking about) So here is how this plays out. It is obvious that people aren't going to pay double or triple the price. What does happen, is people go to the store, and look at the item in person and then buy it online. This is exactly why Toy R Us is closing,

Consumers are equally complicit. They vote with their dollars and consumers are telling companies they want cheaper prices. PERIOD. As such, companies respond trying to cut costs so they can offer lower prices. The biggest expense of any business is labor. So if I can eliminate a position or two by moving to self-checkout, then that is the decision that will get made in order to offer the prices that consumers are demanding.

Of course, the ROI on tech becomes even more feasible when you get unions and leftists pushing for $15/hr, living wages, higher corporate taxes, etc.

a reply to: Edumakated

I think that if state and federal authorities would tax software as a service and automated systems, it might help slow that transition down a bit.

a reply to: JAGStorm

Yeah the whole "showrooming" has been an issue for some time now. People going into appliance-stores, getting adviced and subsequently go home and find the item online...

Business owners are not too happy with this development and even call it "advise theft"...

It is their game, we just learned how to play it. As soon as Internet prices/delivery costs exceed buying from the store, back we go.

Peace

originally posted by: operation mindcrime
a reply to: JAGStorm

Yeah the whole "showrooming" has been an issue for some time now. People going into appliance-stores, getting adviced and subsequently go home and find the item online...

Business owners are not too happy with this development and even call it "advise theft"...

It is their game, we just learned how to play it. As soon as Internet prices/delivery costs exceed buying from the store, back we go.

Peace

It is unethical, but people only think with their wallets. The thing is they will look up and their towns will be devoid of any businesses and they will be the first to cry about it.

I don't think people should needlessly overpay, but I value good service and supporting my local economy over saving a few dollars.

Many small mom and pop's sell their items through Amazon. Many brick and mortar stores, both large and small sell their wares on Amazon. I know a lady who operates out of her house that sells items on Amazon. Amazon is merely an avenue to reach millions of potential customers that many couldn't reach otherwise.

Mega corporations have risen and fallen throughout the years. The fall is usually due to failures to adjust to the consumers demands. Many tried to grow too big too fast. Some had serious competition that impeded their success. As far as Toys R Us, I went a few times during the holidays back in the day WITHOUT my children. I couldn't stand all the people, many with crying or screaming kids who left so many toys laying on the floor in the aisles. Between the masses of people and toys it was almost impossible to walk down the aisles at times. I decided it wasn't the place for me to shop, it was just too much. I felt like I needed a drink immediately after I walked out of that place.

The thing is, the businesses that consumers shop at, whether it be online or in in person are the ones that survive. We can't blame them for changing and adapting their selling practices to fit our needs and desires when it is actually we who are molding and shaping, designing our shopping options. Think about it. WE THE CONSUMER are the deciders. So look at your fellow consumers in finding fault or success in the way you 'must' shop.

ETA:

This is at the bottom of the Amazon site on almost every page. I have outlined in red the part I am referring to.



I think that if I have a bright idea I wan't to sell someday, I would absolutely ALSO try to sell through Amazon. Amazon is only trying to meet consumer demands. Of course they are a mega corporation. There are billions of customers that are demanding items.

a reply to: Edumakated

My only issue is service. I'd rather be crapped on by a stranger on the phone than a pimple faced teen behind a register.

originally posted by: AugustusMasonicus
a reply to: JAGStorm


Toys'R'Us failed because their business model did not change with the times. They easily could have adapted to the threats in their sector and continued to thrive. Nothing is eternal which is why we don't have horses delivering the mail and steam locomotives hauling intermodal containers.

Actually, your assessment of Toys-R-Us is a little out of whack. When the Costcos and Walmarts moved into the 'profitable' toys market, they did so at the peak seasons by offering those toys below market value as an inducement to shop for those toys at their locations. Well below what Toys-R-Us could match. That inducement left all the other products in those Costcos and Wally's worlds as impulse buys at the normal prices. That increased, even further, their profits.

As Toys-R-Us sells only toys, to match those prices, likely at a loss, they had no other products to sell for profit.

So even before the on-line issue, they were in a no-win scenario.

Ironically, Amazon people are quoted as saying Amazon has a five year life expectancy and they will be on the way out, as well.

I definitely predict the fall of brick and mortar stores as we know them. My local chain grocery stores provide a service where you order items online, then come at your scheduled appointment time to pick them up. It's a marvelous time saver. In a theoretical future, my amazon packages could be diverted there so I can pick them up with my groceries. Instead of retail stores, brands could have customer service kiosks for pickups, returns, and product issues. Hopefully this future will force clothing companies to ensure the measurements of the clothing matches the size chart. I think the only buildings full of things to buy will be secondhand stores.

a reply to: JAGStorm

a reply to: nwtrucker

That is a good assessment.

ToysRUs was not diverse at all, so relied solely on toys. WalMart could take a loss on toys and make it up elsewhere.

In hindsight, ToysRUs should have been working out deals with toy makers to give them exclusives on toys. Its the only way I can think to try to hedge against the lack of diversity.

Oh no, I wasn't talking about local, small businesses. The appliance-stores I was referring to are conglomerates themselves...

I think it's kind of poetic that they'd be crying.

Personally I support buying local but then again...I'm broke and potatoes and eggs directly from the farm are way cheaper!!

Peace

double post

a reply to: bigfatfurrytexan

I think you need to either be diverse or totally exclusive. For example, American girl doll. It was unbelievably successful because it was expensive and exclusive. As soon as mattel purchased, it all went downhill. Some AG stores are even closing. They were charging super high prices for dolls and accessories that weren't "exclusive" anymore, even started selling them in Costco! It is such a shame too, because AG won parents over with their historical spin, that sure did go away real quick!

originally posted by: JAGStorm

I am old fashioned, but I say plant a garden, learn how to make things, read up on natural medince, learn how to survive as if all the stores closed down, just in case!

Good call

a reply to: JAGStorm

You are on the right track. Learn to garden, take care of ourselves, shed our materialism, meditate, practice yoga, live an active lifestyle/exercise, self reflect, grow inwardly, etc.

Sure, having robots take over CAN be a bad thing, but does not have to be. Same with UBI. Everything is what we make of it. However, if we decide to utilize these coming trends for our inward growth, the intentions of others won't matter. If we learn to appreciate what we have, our mind, body, and breath, then commercialism and materialism will fade away no matter how much businesses want us to buy their products.

Materialism is quite funny, when you break it down. What does anyone have that I need? Is their breath any better than my breath?

This trend towards automation is exactly what humanity needs to dive further inward towards true liberation. No matter the result, how that result effects us is up to us. It starts with ourselves as individuals, taking personal responsibility for discovering what truely matters. This transformation won't happen overnight. There will be more suffering before people realize that suffering comes from within.

a reply to: JAGStorm

Exclusivity is the key.

ToysRUs wouldn't even need that much of it. In their inventory, having a dozen exclusive items that they can pitch would be all they need. When Beanie Babies were going nuts, how did McDonalds manage to undercut the nations largest toy chain? ToysRUs should have had half dozen exclusive beanies, including a Geoffrey, to bring folks in.

Good post.

Dude Toys R Us use to be an experience...

Sad to see them go but I knew it wad a matter of time once KB Toy Store closed shoppe.