News The reason Toys 'R' Us and other retailers are failing

Discussion in 'Retail' started by Cody, Mar 22, 2018.

  1. Cody

    Cody

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    The retail sector recently is a very interesting one. Many retail stores, including the most recent news of Toys 'R' Us haven't done what you'd normally expect with changing times; to keep up with online, and consumer demand and change.

    Back in the early 2000's Toys 'R' Us outsourced themselves to Amazon, signing a deal with the eCommerce giant to handle their fulfilment, making Amazon the exclusive vendor of Toys'R'Us.com. What this means is Toys 'R' Us would be sending potential buyers to their product page on Amazon rather than their own site, and letting Amazon act as their fulfilment provider. Effectively not building their own eCommerce store, but relying on Amazon instead to deliver.

    With a huge amount of consumers purchasing toys and electronics from Amazon, eBay, other eCommerce websites that offer up cheaper alternatives, and visiting stores with better locations rather than an Ikea style format - being somewhat out of reach of where action is - this was sure to fail for the toy store.

    Amazon eventually complained that Toys 'R' Us wasn't selling, or carrying enough stock to sell on their marketplace, and because the toy chains online presence pretty much sucked, they missed out on this crucial eCommerce journey, and then sued Amazon and won the battle to cancel their contract with them. They just weren't making enough sales using the Amazon platform.

    Amazon and the likes of other online eCommerce marketplaces are consistently listening, adapting and changing to consumer demand, focusing on cutting delivery times, introducing a 2-3 day delivery, free shipping in most cases, easy to navigate website and much more. This is where Toys 'R' Us failed. They only really just established their website in 2006 with some minimal changes. And also recently Toys 'R' Us made an investment of $100 million from May 2017 as part of a three year plan to boost their eCommerce efforts and business; this is far too late to be trying to get back in the game,

    Brick-and-mortar stores just aren't changing their strategy to adapt to the current changing consumer demand world that we live in. They aren't making use of YouTube, Facebook, Instagram of even Pinterest to match the needs of those that don't want to visit a store to collect a toy, but instead sit back in their own comfort scrolling through the internet like there's no tomorrow. That's the reality of it.

    It's about time retailers stop being close minded, thinking "the internet will die out", and start to listen, adapt and change their way of thinking to improve their online presence to keep up with consumer change and demand.

    There is huge demand online, and this goes also for a demand of innovation and creativity. Something Toys 'R' Us lacked, something other retailers are lacking.

    If you don't innovate and keep up you'll surely die.
  2. Cody

    Cody

    Joined:
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