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Toys ‘R’ Us Didn’t Have to Die

bloomberg.com

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Re: Toys ‘R’ Us Didn’t Have to Die

#11

Post by aviv »

thisisit wrote: post #8

Retailing seems to be dying in US irrespective of the company: https://www.bloomberg.com/news/articles/2018-04-17/retail-st... Couple of years ago, one of my friends bought a store at a strip mall. The store was making a loss. And the previously owners were an elderly couple. So my friends thesis was that they weren't exactly tuned into the digital presence business and it was still entirely possible to run a store i…

In a few years strip malls will be occupied only by food businesses, pharmacies, check cashing places, and urgent care clinics.

Re: Toys ‘R’ Us Didn’t Have to Die

#12

Post by pandapunchpower »

gkoberger wrote: post #5

I read the whole article, and I didn't really see a convincing argument that it didn't have to die. Sure, it could have eked out a few more years... but it was living on borrowed time. Not only do most people shop online now, most toys are also online. I imagine most parents put money into TV shows, video games, iPhone apps, etc.

There is some scope for a brick and mortar toy store provided they are willing to be double as a pseudo-playcenter.

Toy aisles and toy stores are frequently populated by exhausted parents standing around while their children entertain themselves checking out the toys. The kids are happy enough. The parents are content just to have a few minutes to themselves. Toy retailers typically try and dissuade this behavior.

Meanwhile indoor playgrounds/play centers are a huge and growing business. They are happy for parents to unleash their children while they make their money from entry charges, selling cups of coffee to the parents and snacks for the kids.

Despite having a huge inventory of toys play centers never actually sell toys that I have seen. Tearful children have to leave their new favorite ride on racing car (or whatever) behind when they leave.

Re: Toys ‘R’ Us Didn’t Have to Die

#13

Post by tdeck »

aviv wrote: post #11
thisisit wrote: post #8

Retailing seems to be dying in US irrespective of the company: https://www.bloomberg.com/news/articles/2018-04-17/retail-st... Couple of years ago, one of my friends bought a store at a strip mall. The store was making a loss. And the previously owners were an elderly couple. So my friends thesis was that they weren't exactly tuned into the digital presence business and it was still entirely possible to run a store i…

In a few years strip malls will be occupied only by food businesses, pharmacies, check cashing places, and urgent care clinics.

You forgot mattress stores.

Re: Toys ‘R’ Us Didn’t Have to Die

#14

Post by tlb »

jaysonelliot wrote: post #10
gkoberger wrote: post #5

I read the whole article, and I didn't really see a convincing argument that it didn't have to die. Sure, it could have eked out a few more years... but it was living on borrowed time. Not only do most people shop online now, most toys are also online. I imagine most parents put money into TV shows, video games, iPhone apps, etc.

There's nothing about the brick & mortar toy space that's inherently living on borrowed time. It was Toys 'R' Us' own mismanagement that doomed it. Toy stores can be a destination. Provide a compelling experience for parents and kids alike. It's easy to imagine a space where kids get to play with toys hands-on, and parents get to judge for themselves whether they think they're appropriate in terms of fun and quality—…

There are a few destination toy stores, but mostly limited to affluent, progressive markets like NYC, SF and Boulder. If your theory is correct, they should be able to scale up nationwide. Why do you think this hasn't happened?

Re: Toys ‘R’ Us Didn’t Have to Die

#15

Post by whatsstolat »

tdeck wrote: post #13
aviv wrote: post #11

Earlier quoted context omitted.

In a few years strip malls will be occupied only by food businesses, pharmacies, check cashing places, and urgent care clinics.

You forgot mattress stores.

Nope that shit is getting disrupted. Ultimately mattresses will come from amazon.

Re: Toys ‘R’ Us Didn’t Have to Die

#16

Post by ccozan »

thisisit wrote: post #8

Retailing seems to be dying in US irrespective of the company: https://www.bloomberg.com/news/articles/2018-04-17/retail-st... Couple of years ago, one of my friends bought a store at a strip mall. The store was making a loss. And the previously owners were an elderly couple. So my friends thesis was that they weren't exactly tuned into the digital presence business and it was still entirely possible to run a store i…

As a, maybe, counter example, in my small bavarian city they opened 3(!) new shopping malls in the last 5 years. Me being more global than the rest of the fellow locals, I was baffled.

Re: Toys ‘R’ Us Didn’t Have to Die

#17

Post by toomuchtodo »

whatsstolat wrote: post #15
tdeck wrote: post #13

Earlier quoted context omitted.

You forgot mattress stores.

Nope that shit is getting disrupted. Ultimately mattresses will come from amazon.

After buying a Serta from Amazon and a Tuft and Needle, I will never buy a mattress again without being able to lay on it first.

Disrupted? Try to fit a king foam mattress back in the box to meet return obligations when you don’t like it, before we touch on the counterfeit product issue from Amazon.

Re: Toys ‘R’ Us Didn’t Have to Die

#18

Post by coding123 »

toomuchtodo wrote: post #17
whatsstolat wrote: post #15

Earlier quoted context omitted.

Nope that shit is getting disrupted. Ultimately mattresses will come from amazon.

After buying a Serta from Amazon and a Tuft and Needle, I will never buy a mattress again without being able to lay on it first. Disrupted? Try to fit a king foam mattress back in the box to meet return obligations when you don’t like it, before we touch on the counterfeit product issue from Amazon.

T&N just needs to know you donated it with a proof of donation. No back in the box needed.

Re: Toys ‘R’ Us Didn’t Have to Die

#19

Post by mgkimsal »

aviv wrote: post #11
thisisit wrote: post #8

Retailing seems to be dying in US irrespective of the company: https://www.bloomberg.com/news/articles/2018-04-17/retail-st... Couple of years ago, one of my friends bought a store at a strip mall. The store was making a loss. And the previously owners were an elderly couple. So my friends thesis was that they weren't exactly tuned into the digital presence business and it was still entirely possible to run a store i…

In a few years strip malls will be occupied only by food businesses, pharmacies, check cashing places, and urgent care clinics.

you forgot "internet cafes" - meaning gambling storefronts.

Re: Toys ‘R’ Us Didn’t Have to Die

#20

Post by hn_throwaway_99 »

voidmain wrote: post #6

Despite the title and the focus on the form of financing, none of the facts in the article even suggested to me that the company would be in any better shape if it had used equity financing rather than debt. It sounds, rather, like an unprofitable business that no one in their right mind would give any more money. If someone thinks they can figure out how to make a workable business out of big box toy stores, it soun…

It at least sounds plausible to me that you could make a toy store a "destination" business if you did something to differentiate it from Amazon: kids parties, video game tournaments, something. You'd have to transform what it means to be a "toy store". Of course, that takes a lot of money, and with Toys-R-Us' debt load there was no way they could have afforded that.
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