> That’s a great point, and I’m always adamant about pushing back slightly on the story of Toys“R”Us. Toys“R”Us was profitable the last year before it declared bankruptcy. The challenge was that it had so much debt that it was servicing that rather than being able to expand its operations, and it had advantages that Amazon didn’t have in terms of physical stores.
Push back more strongly. My partner at the time had been working at a Toys'R'Us store for many years. She said right up to the last day store traffic was as strong as ever - think last minute shopping for your kid's friend's birthday party, buying toys for your own kid's birthday etc. They had significant traffic and sales throughout the year, not just holiday season. Buying a bicycle for our kid? You're going to want to do that in person. You're a mediocre parent that wants to placate your "annoying" kid? take them to Toys'R'Us and let them shop for something. People really underestimate how well TRU was thriving as a brick-and-mortar store.
Also, contrary to what the article says about not figuring out online shopping and logistics, she said associates spent a majority of their time pulling online orders for same-day in-store pickup, and that business was steadily increasing.
Too much debt killed Toys'R'Us, not Amazon. I don't know if it was all acquisition debt, or if they loaded up afterwords to strip-mine value but either way it was the debt period.
> She said right up to the last day store traffic was as strong as ever... People really underestimate how well TRU was thriving as a brick-and-mortar store.
To be fair, that doesn't mean thriving at all. It's easy to have tons of customers but be making zero profit because all your revenue is eaten up by costs. It's common for stores to be busy up to the moment they go bankrupt -- because the problem is they're stuck where they can't raise prices (shoppers will evaporate) and they can't lower costs.
> contrary to what the article says about not figuring out online shopping and logistics, she said associates spent a majority of their time pulling online orders for same-day in-store pickup
That sounds like not figuring it out to me. Store employees pulling orders for in-store pickup is generally a losing proposition and has never been sustainable. Big warehouses handle online orders efficiently. Retail stores don't at all, generally speaking.
Push back more strongly. My partner at the time had been working at a Toys'R'Us store for many years. She said right up to the last day store traffic was as strong as ever - think last minute shopping for your kid's friend's birthday party, buying toys for your own kid's birthday etc. They had significant traffic and sales throughout the year, not just holiday season. Buying a bicycle for our kid? You're going to want to do that in person. You're a mediocre parent that wants to placate your "annoying" kid? take them to Toys'R'Us and let them shop for something. People really underestimate how well TRU was thriving as a brick-and-mortar store.
Also, contrary to what the article says about not figuring out online shopping and logistics, she said associates spent a majority of their time pulling online orders for same-day in-store pickup, and that business was steadily increasing.
Too much debt killed Toys'R'Us, not Amazon. I don't know if it was all acquisition debt, or if they loaded up afterwords to strip-mine value but either way it was the debt period.