It seems no one is immune to the changing business models as Toys R Us is the latest to close its doors and we all should reflect on the implications to us, our family and lifestyle. The veritable retailer (under a mountain of debt) struggled to stay afloat but with technological changes occurring so rapidly it turned to be a losing effort.
I’ve spoken at length about the disruptions in the workforce due to technology improvements and one of my former ‘faves’, Toys ‘R’ Us is the latest company to go out of business. It joins 18 other companies that have filed for bankruptcy this year alone.
Here are some interesting facts noted in the article about the demise of Toys ‘R’ Us
- TRU, filing for bankruptcy has set off a wave of nostalgia in shoppers. For instance, “It’s sad to see the demise of a once great retailer. As a child, I always loved to visit, dream and make toy lists.”
- Said another “I hate to see this. I understand the advancement of technology and the benefits of e-commerce but we are losing some of the “magic” of being a kid for the sake of convenience.”
- Lego recently announced it’s cutting 1,400 jobs citing falling profits
So, what’s causing the toy crisis of 2017? The RETAIL APOCALYPSE! The retail sector has shed more than 89,000 jobs!
- Online shopping is a threat to brick and mortars!
- Unboxing videos: a totally new concept to me – kids don’t need TRU to discover cool toys- they have toy unboxing instead which is essentially products being unpacked on video and uploaded to the web. The phenomenon attracts millions to YouTube. Some unboxers earn $1 million a month in advertising revenue.
- Video Games: in 1999 TRU was the #2 retailer for video games and software. Today it accounts for less than 1% of market share.
- Amazon: Amazon has more than 5 million toys and games listed online. TRU has less than 100,000. Amazon’s online sales are over $2.1 billion which dwarf’s TRU’s sales of $912 million
What do you think the future holds for the toy industry?
More importantly, what does the future hold for you? How secure do you feel about your current position? There’s a tremendous amount of change happening. This type of consolidation is very real and it will affect all of us in some manner. Even the folks at Amazon. As robotics advance, fewer and fewer workers are going to be needed.
Here’s a question for you: Why wouldn’t you investigate adding a side business to what you’re already doing? I know people say they don’t have time, etc. – in reality, we all make time for things we want. To that i say that’s a lot of hooey!
We all know that if there’s something we want, we make the time.
So how about sitting down with yourself and that conversation? Or better yet, I’d be happy to listen to your conversation and offer any suggestions/help i can.
I hope you got some value out of this. If you did, hop over to my blog at www.suemoore.net and look at some of the posts I’ve done. They may inspire some new thoughts. Email as always is email@example.com.