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Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

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Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#191

Post by linkregister »

kbenson wrote: post #90
rb808 wrote: post #66

Earlier quoted context omitted.

>Every time I find something unique that I would have never looked for on Amazon, and often I'm hooked by the tactile act of playing with something that couldn't be fully replicated online. You're absolutely right. The result usually is though that the kid finds a toy they like then puts in on their Birthday/Christmas wishlist from where the Santa buys from Amazon. I like to think I never do this, but if the price is…

> The result usually is though that the kid finds a toy they like then puts in on their Birthday/Christmas wishlist from where the Santa buys from Amazon. Well, it's also that when you walk in there looking for a present for the kids birthday party you are about to take your child to attend, you end up buying something there, and possibly even paying them to wrap it for you. I'm not sure I've ever ordered a present o…

Absolutely. For any parent with no time and a bit of money, the toy store is far faster for a just-in-time present purchase. I have yet to find a worthwhile price difference for merchandise on Amazon.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#192

Post by Pxtl »

tyingq wrote: post #172
Pxtl wrote: post #156

Earlier quoted context omitted.

I think the place brick and mortar seems to do well is where the store adds value over just selling merch. You go to Home Depot for expertise as much as for parts. You go to a local boardgame store for recommendations and events. You go to a toy store to get your hands on them and leverage staff expertise and curated inventory. The only big problem with this approach is showrooming. Toys r us or best buy carry bad pr…

There's a lot here I agree with, but... >You go to Home Depot for expertise as much as for parts Has not been my experience. Ace hardware is a little better, but not much. I suppose sometimes they get lucky and a knowledgeable retiree is willing to work for those wages.

Must be a regional thing. The guys at my local Home Depot know their crap. They're not the confused teenagers that run most local big box stores.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#193

Post by jobu »

tyingq wrote: post #172
Pxtl wrote: post #156

Earlier quoted context omitted.

I think the place brick and mortar seems to do well is where the store adds value over just selling merch. You go to Home Depot for expertise as much as for parts. You go to a local boardgame store for recommendations and events. You go to a toy store to get your hands on them and leverage staff expertise and curated inventory. The only big problem with this approach is showrooming. Toys r us or best buy carry bad pr…

There's a lot here I agree with, but... >You go to Home Depot for expertise as much as for parts Has not been my experience. Ace hardware is a little better, but not much. I suppose sometimes they get lucky and a knowledgeable retiree is willing to work for those wages.

> > You go to Home Depot for expertise as much as for parts

> Has not been my experience. Ace hardware is a little better, but not much.

Most Home Depot employees at my local store were very knowledgeable for a while, but the construction market is so crazy here (Colorado) that anyone with that knowledge can make at least double what Home Depot will offer.

That said, my local store still does have a few knowledgeable people, but they tend to work morning shifts. I've learned to drop in before work if I have any DIY-type questions.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#194

Post by linsomniac »

tyingq wrote: post #172
Pxtl wrote: post #156

Earlier quoted context omitted.

I think the place brick and mortar seems to do well is where the store adds value over just selling merch. You go to Home Depot for expertise as much as for parts. You go to a local boardgame store for recommendations and events. You go to a toy store to get your hands on them and leverage staff expertise and curated inventory. The only big problem with this approach is showrooming. Toys r us or best buy carry bad pr…

There's a lot here I agree with, but... >You go to Home Depot for expertise as much as for parts Has not been my experience. Ace hardware is a little better, but not much. I suppose sometimes they get lucky and a knowledgeable retiree is willing to work for those wages.

Expertise at a Home Depot can be problematic. Sometimes you get someone who really knows what they are talking about. Sometimes you get someone who doesn't, but is speaking with authority anyway.

A friend recently told me about a time he sent his wife in to Home Depot with a list of things to get, and she came home with a different set of things that an employee recommended. My friend went back there to raise a stink about being sold the wrong things, found out the employee was a out of work plumber, and that "sharkbite" is great stuff.

"That's funny" I told my friend, "Literally yesterday I was talking with my plumber and he pointed out that I had sharkbite running to my sprinkler system. I told him I didn't know what his opinion of it was, but I didn't love sharkbite, he said he didn't love it either."

Mostly I go to my local hardware store because it's 2 minutes away rather than 15. Lowes is another 5+ minutes further, but it seems to have a lot more choice in some things, and I've had a bad experience with a couple Home Depot employees that I just can't let go of.

Home Depot does seem to have a weird set of things they do stock and don't. Like all their thinset mortar didn't seem to be labeled as modified or unmodified last weekend...

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#195

Post by jobu »

product50 wrote: post #39

Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online reta…

> Though this may have something to do with Amazon (and retail generally trending online)

Online shopping plus theres a growing trend to spend money on experiences instead of things. We've switched to buying our kids things like climbing lessons or horse camp instead of toys.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#196

Post by linkregister »

TheCondor wrote: post #182
minikomi wrote: post #158

Earlier quoted context omitted.

Absolutely. My local bike shop[0] does this amazingly - holding rides, in-store events, very friendly and knowledgable mechanics, lots of in-house produced merch and encourages a culture of customizing and sharing bikes between customers. They do a lot of online work too, with an amazing series of instagram accounts. [0] http://bluelug.com/

Bike shops play by different rules. The industry and vendors collaborate to block big stores. You cant get a Colnago or pinarelo or any top end bike at Walmart or web Walmart (amazon) you have to go to a bike shop and said shop is expected to perform certain services as you buy that bike. They fit it, they assemble it properly, usually tune it after a few rides, etc. the wholesale price has a price cooked in for asse…

Why would Walmart stock high-end bikes, fully knowing that their floor staff don't have the expertise to answer any questions about the products? Who would go to Walmart to buy a high-end bike?

Walmart shoppers look for commodity items, full stop. There is nothing wrong with that, by the way; toilet paper and cleaning supplies are used by everyone but are barely distinguishable.

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#197

Post by KKKKkkkk1 »

product50 wrote: post #39

Though this may have something to do with Amazon (and retail generally trending online), it does appear that the big culprit here were Bain Capital (and its partners) who took it private in 2005 via leverage buyout and ladened Toys r Us balance sheet with untenable debt from thereon. Apparently, they were paying $500M in interests alone per year vs. reinvesting capital in growth of their offline stores or online reta…

Yeah, so Bain made a bad decision when they bought Toys `R' Us and took on a lot of debt right at the moment when Amazon was about to enter the business. Now they lost their investment. Why do I get the sense that Bain is being cast as a villain in this story?

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#198

Post by [deleted] »

jimmaswell wrote: post #190
heurist wrote: post #163

Earlier quoted context omitted.

Local will re-emerge with tighter communities. Suburbs are unsustainable wastes and we'll have to adapt by reforming walkable cities. Kids will have tons to explore at that point, like they used to. AR/VR will enable more spatially interactive technologies as well. Pokemon Go was a fad but I think it heralds a yet-to-come wave.

>Local will re-emerge with tighter communities. Suburbs are unsustainable wastes and we'll have to adapt by reforming walkable cities. Kids will have tons to explore at that point, like they used to. The suburb hate bandwagon on here has gotten way out of hand. They are not inherently unsustainable and it is not a "waste" to spend a bit more resources to make a space that's nicer to live in. Not everybody wants to ha…

[deleted]

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#199

Post by wolverine876 »

dadrian wrote: post #111
dadrian wrote: post #104

The CEO of Toys 'R' Us as of 2015 is Dave Brandon. He was the former CEO of Dominoes Pizza. After he left Dominoes in 2009 is when they started the "We used to suck, we don't anymore, please come try us again!" advertising campaign. After Dominoes, Dave Brandon was the athletic director at the University of Michigan. During his time as AD, he managed to alienate the majority of the fan base, hire a coach who got wors…

I'll also note that in the time since Dave left Dominoes, their stock has outperformed Amazon, Google, Microsoft and Apple, with slightly under 12x returns in the last 10 years. Since Dave left Michigan, the interim AD hired Jim Harbaugh, and the football program is now regularly in top 10 in the nation.

Brandon did very well at Dominos; Bain Capital, Dominos' owners, certainly thought so, because they later hired him to run Toys R Us.

> Since Dave left Michigan, the interim AD hired Jim Harbaugh, and the football program is now regularly in top 10 in the nation.

Harbaugh's record through 2 seasons + 3 games = 23-6

Brady Hoke, the coach Brandon hired, through the same period = 22-7. Hoke also beat Ohio State during that period and Harbaugh hasn't. At Michigan, beating Ohio State is almost more important than the rest of the season combined; ESPN called it the top rivalry in all of sports at one point.

But more important to the University of Michigan than winning a children's game played with a ball, at least before Harbaugh and that interim AD, was the student-athletes' welfare and their development in the classroom and in the community. By those measures Hoke and Brandon far outperformed anyone. I know sports fans don't think about those things, but remember that it is an educational institution and the athletes are students (and if they aren't, they should be paid like highly talented employees).

Re: Toys ‘R’ Us Plans Bankruptcy Filing Amid Debt Struggle

#200

Post by [deleted] »

amrrs wrote: post #145
chrisco255 wrote: post #137

Earlier quoted context omitted.

Leadership is a thing. It really matters. An effective leader can be a force multiplier for everyone in the organization that reports to them, directly or indirectly. An ineffective leader can literally bankrupt an organization.

No one could forget the force of Steve Jobs that brought back Apple and that ambitious Travis Kalanick who built Uber empire.

[deleted]
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