Amazon didn't kill Toys 'R' Us. Here's what did

[Applewood]

Amazon didn't kill Toys 'R' Us. Here's what did

t's true, online shopping didn't help matters, but the struggles of Toys "R" Us predate the boom in online shopping. Many of its wounds were self-inflicted.

The company's biggest problem: It was saddled with billions of dollars in debt. That debt stopped it from making the necessary investment in stores. And that meant an unpleasant shopping experience that doomed the chain. The company told employees Wednesday that it would close or sell its US stores after 70 years in business.
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"If you're going to have that breadth of inventory, you need someone in the store to help you find it, help you experience it," said Greg Portell, lead partner at retail consultant A.T. Kearney. "It's hard to sell toys in a cold, warehouse environment."

Toys "R" Us' debt problems date back to well before Amazon (AMZN) was a major threat. Its debt was downgraded to junk bond status in January of 2005, at a time when Amazon's sales were just 4% of their current level.

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Excerpt.  Read more at:

http://money.cnn.com/2018/03/15/news/companies/toys-r-us-closing-blame/index.html

[Polly Ticks]

I can deal with shopping in a crappy store if the prices are right.  The Toys 'R' Us prices are nowhere close to being right.

[INVAR]

Toys R Us was too expensive.  Even back in the 80's and 90s during it's heyday - they were far and away pricier for the same toys you could get at Walmart, K-mart or Sears.

When stuff would go on 'sale' - the prices would come down to what the discount stores were selling their regular-priced toys for.

And the selection was not as grand as it once was.  Most Toys R Us combined with Babies R Us and half their retail store was cut in half with infant supplies and clothes - cutting their toy selection down to what Target's toy department was in size.

I shopped elsewhere.  Amazon is not all that cheap for certain toys either.  Walmart brick and mortar stores still beats most of what is out there for toy prices.  Their online store is something else however.

ToysRUs killed itself by niche marketing to the upper middle class which was pretty much wiped out under Obama.

[GtHawk]

I can deal with shopping in a crappy store if the prices are right.  The Toys 'R' Us prices are nowhere close to being right.

I think the last time my wife and I were in one of their stores was around Christmas 2008, they were playing some crappy hip hop music so loud that you couldn't think and the aisles  were so cluttered you could hardly walk around and as far as service the "young people" that were working could care less. In talking with coworkers I found that my experience far from being an aberration, was the norm. I think that is why they went belly up, service can go a long ways to covering other deficiencies, they just didn't care.

[Weird Tolkienish Figure]

Haven't been in one in probably decades.

[truth_seeker]

In business over 50 years. 800 US stores and another 800 outside US.

Without more study, it sounds like just plain crappy management.

Best Buy seems to have weathered online competition. We buy from them, due to excellent inventory, floor displays, etc.

They get our business for appliances, TVs, Cellphone replacements, etc. Maybe not for a laptop, though.

[catfish1957]

I think the last time my wife and I were in one of their stores was around Christmas 2008, they were playing some crappy hip hop music so loud that you couldn't think and the aisles  were so cluttered you could hardly walk around and as far as service the "young people" that were working could care less. In talking with coworkers I found that my experience far from being an aberration, was the norm. I think that is why they went belly up, service can go a long ways to covering other deficiencies, they just didn't care.

My last shopping expedition there a few months ago was a disaster.  Associates were experts on how to avoid and run from customers in need.

[goodwithagun]

In business over 50 years. 800 US stores and another 800 outside US.

Without more study, it sounds like just plain crappy management.

Best Buy seems to have weathered online competition. We buy from them, due to excellent inventory, floor displays, etc.

They get our business for appliances, TVs, Cellphone replacements, etc. Maybe not for a laptop, though.

I’ve been wondering how long Best Buy is going to do it. I admit it, I love Amazon Prime. It’s too damn convenient.

[catfish1957]

In business over 50 years. 800 US stores and another 800 outside US.

Without more study, it sounds like just plain crappy management.

Best Buy seems to have weathered online competition. We buy from them, due to excellent inventory, floor displays, etc.

They get our business for appliances, TVs, Cellphone replacements, etc. Maybe not for a laptop, though.

I think a lot of it is that like myself, I don't feel comfortable making larger electronic purchases on Amazon.  Kind of a kick the tires kind of thing.  I sure have done my part in keeping Best Buy in business.

[Ancient]

I bought a monitor cable from Best Buy today.  A new fancy cable that I recognized neither end.  I take a pic of what I need at home, and go get help to get what I need.  Still sometimes advantages to being there in person.