Another big box retailor (Toys-R-Us) may be filing bankrupcy ...

[s0me0nesmind1]

Small businesses/suppliers are going to be in a lot of hurt (10 cents on the dollar, if they are lucky) -



https://www.usatoday.com/story/mone...ings-expected-after-holiday-season/683762001/

And big ones (such as Mattel and Hasbro) too - https://finance.yahoo.com/news/traders-making-huge-bets-toys-132139891.html

https://finance.yahoo.com/news/toy-companies-shares-fall-concerns-toys-r-us-194254214--sector.html

Their fault, I'm sure the writing was on the wall for the longest time. They should have credit analysts on hand to see that their debt levels are accruing to large amounts and should have been cutting back supplies.

 

[Svnla]

Today WSJ has an article about the bankruptcy filing and TRU has $5.3 billion debt load. That's a lot of debt.

Investment firms' (Bain, KKR, Vornado) $1.3 billion of dollars for TRU in 2006 is gone - https://www.bloomberg.com/news/arti...ornado-suffer-wipeout-in-toys-r-us-bankruptcy

 

[John Connor]

The problem with a lot of brick and mortar retail is that Amazon is kicking their ass. People are too busy to walk into a store anymore and online shopping is the new deal. Malls are even going under.

So here is how ToysЯUs and the rest can save themselves: Turn their local stores into a local warehouse. Allow the purchase of goods on their websites and offer local shipping within hours or a few days. eCommerce and home delivery is the wave of the future. In about 30 years time I imagine you won't even visit a grocery store anymore. In fact, my local grocery store offers curb side pickup. I also have the OrderUp App on my phone. I was actually able to have McDonalds delivered to me. I never thought I'd see the day that would happen. So again, eCommerce and home delivery is where it's at. If you want to beat Amazon, you have to beat them at their own game.

 

[John Connor]

I don't know if Best Buy is in debt, but I wonder if they're next? Better heed my advice. Offer local shipping within hours and you might have something.

 

[Staples]

Best Buy has shifted their business model a few years ago. They lease out space to Samsung, Sony, LG and they all have their own booths and pay rent. Looks like they got rid of media that was in the center of the store and now uses that space for booths. They still sell TVs and computers but I think this new revenue stream helps.

 

[Sonikku]

I think what a lot of people are forgetting is that in a lot of states Amazon doesn't have to charge sales tax. In a state where Amazon and Walmart are priced the same, they win by default. Reasons for that are a big part of their success. Now it would be one thing if Amazon was made to charge sales tax in all states and it was a level playing field, it would be one thing if consumers still preferred it simply for convenience. But it isn't exactly an apples to apples comparison so long as Amazon can hit these retailers with a double whammy. And let's be honest. Those of you that have dodged tax in the past sure as shit didn't claim it when you filed.

 

[Sonikku]

Best Buy has shifted their business model a few years ago. They lease out space to Samsung, Sony, LG and they all have their own booths and pay rent. Looks like they got rid of media that was in the center of the store and now uses that space for booths. They still sell TVs and computers but I think this new revenue stream helps.

I love Best Buy! GCU is what makes my hobby viable. 20% off the price of all new video games makes for some pretty crazy combos ones the sale prices and the 25 off 100 visa promotions start kicking in!

 

[Aikouka]

Malls are even going under.

Malls are dying out because they're just too damn expensive (heating/cooling, upkeep and rent), and they only popped up like crazy due to a 1954 tax loophole that made them a good tax shelter. I've noticed that open-air malls seem to be the new, cool thing, but I've heard that the one here in town has really high rent prices, and while it becomes a prime area for people, prices need to be higher to afford the rent, and that drives away customers.

I think what a lot of people are forgetting is that in a lot of states Amazon doesn't have to charge sales tax.

Amazon started charging sales tax in a lot of states where they don't even have a presence. It's bad for the consumer, because you only had to pay state sales tax on your state income tax return, which is typically far less than the sales tax you pay in a store. Use tax here is only 4%, but I pay 9% to Amazon.