![]() ![]() So, needed to get in front of that shift and devise ways to bring people into the store, creating services and - it’s got to be something more than the product.”ĭitch Seasonality, Lean Into Online Gaming,Ī huge factor cited in the demise of Toys ‘R’ Us is perhaps one long deemed unavoidable for some retailers: The bulk of its business was done during a six- to eight-week period of the year (the holiday season). “Whereas a retailer wants to capitalize on and charge a premium for an in-store experience and for quality elements that can be communicated in person, a lot of that gets lost when it transfers online. “When products move online, we see price playing a much bigger role,” Black said, suggesting the struggling chain may have needed to reassess its pricing strategy to ensure it made sense in the current climate. With two important factors working against Toys ‘R’ Us - competitive online prices and a general consumer migration to e-commerce - the retailer could have made several crucial changes to keep shoppers in its stores. ![]() In recent years, according to Black, toys have become a highly commoditized category - a trend strongly bolstered by the digital boom. “Get in front of these shifts and respond to them quickly in an appropriate way.” Rethink Pricing & Raise Experiences “The big learning for other retailers is to act quickly in terms of what’s happening in the market,” Black explained. While a frenzied response on the part of companies is hardly appropriate, ignoring critical market changes (think Blockbuster) or being too slow to act is an easy route to failure in the current climate. Move Quicklyĭigital competition, a growing preference for experiential spending and a heightened consumer disinterest in “things” have all taken aim at retail at a frenetic pace. Here, four things Toys ‘R’ Us could have done differently to survive. Yet, strategically, according to Katherine Black, principal of retail and consumer strategy at KPMG, there are critical lessons to be gleaned for footwear and apparel brands and sellers seeking to remain in retail’s surviving class. In the case of Toys ‘R’ Us, experts widely agree that private equity ownership and an unworkable debt load were leading factors in its ultimate curtain call. Macy's Will Revive the Toys 'R' Us Brand in Over 400 Stores and Online
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