Ugly, ugly times continue for traditional brick-and-mortar retailers. The overall trend is down for just about all B&M retail and malls, as Amazon.com and brands’ direct-to-consumer sales suffocate old-school business.
Add the changing toy landscape as board games and puzzles continue an upward trend, and connected toys eat the marketplace, having seen VC funding growth of 15.75x between 2011 – 2015. Consumers are more curious, research and find products online where they can also be purchased from home or a mobile device, they’re looking for tech-connected toys, and value their time. All bad things for a traditional destination store like Toys ‘R’ Us.
Retailers who adapt still have a chance to thrive in the mixed digital/storefront environment, but as we’ve seen with Amazon’s recent moves on Whole Foods, they’re coming for everybody’s whole-grain, kale and spinach, locally sourced, gluten-free, cloud-connected lunch.
With shoppers flocking to Amazon.com Inc and children choosing electronic gadgets over toys, Toys ‘R’ Us has struggled to boost sales and service debt following a $6.6-billion leveraged buyout by private equity firms in 2005.