*In this video, I talk with author and economic analyst John Sneisen about the inevitable downfall of Toys "R" Us as the chain plans to close potentially all stores by next week if not in the coming year.
The company filed Chapter 11 bankruptcy in September, falling from par to pennies on the dollar. The company was LBOed for $6.6 billion in 2005. Well so much for those games, the Christmas season did not suffice and Toys "R" Us is done.
So there's a reason for this. A few reasons...
One is automation. Companies like Amazon are obliterating retail competition by making everything more affordable online without having to go to the store and being able to stock more. It certainly helps that Amazon has gotten billions from the government over the years. More government sanctioned monopolies.
The other reason this is happening is due to the fact that there is vast poverty wiping out the middle class, from the central banking system down to government and bank destruction of the free market. People in poverty cannot afford to spend a fortune on worthless plastic junk at Toys "R" Us. They're far more easily able to buy cheaper toys from Walmart, The Dollar Store or Amazon. The fundamental value is no longer there. Parents are more concerned with putting food on their table for their children and of course heating the home in the winter. We can't forget that kids as young as 7 or 8 these days have smart phones and aren't as interested in plastic toys anymore.
Some may call it the down fall of society. Others, the demand of the markets. Others may simply call it the future. One way or another, Toys "R" Us is saying goodbye. They're not the first, and they won't be the last.
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Times have changed. Many consumers, even those in poverty, would rater spend their spare cash on gadgets like iPhones and VR goggles - the toys just don't have the appeal they used to, even for the youngsters, who are now just playing with their tablets.
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Thanks for this news bro 💕
good news...thanks for sharing....
Great post...
Thank for sharing news...
Well times certainly are a changin... as they always are.
But I don't believe that the reason for this is that children are not that interested in physical toys anymore. Other factors such as the ones you mention, economy and amazon may play a role, but these wouldn't be critical tipping points for a company that knows what it's doing. Just look at the resurgence of board games and pen-and-paper roleplaying games, they were both supposed to be dead and extinct by now an yet...
Imho, the biggest problem is that Toys 'r' Us are a big dinosaur corporation. And that's pretty much it. They didn't adapt, they kept sneering at new trends and products. For example, in the realm of board games (a subject dear to my heart) a cursory examination of their shelves would have revealed that they were groaning with ancient crap games whose names are now used as term of derision at places like boardgamegeek (Monopoly? Are you kidding me?!). And what about all that Star Wars junk no one really cares about anymore?
I'll now peer into my crystal ball and make the same prediction I made about board games about 10 years ago: Quality physical toys will be back, and they'll be bigger than ever. It is only when the dinosaurs die off completely that the new players will step in and fill the void.
Good reports thanks