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Forums - General Discussion - How Can Retailers Survive?

Gamestop really got lucky with the Switch success(They havent closed a store since June 2017 in the States IIRC), because Nintendo gamers lean more towards physical than xbox/playstation (especially with that paltry 32 gb space on the console).

Their 2017 holiday was much better than the 2016 holiday as a result.

However, this only stalls the eventual shutdown temporarily, and doesn't prevent it.



Bet with Intrinsic:

The Switch will outsell 3DS (based on VGchartz numbers), according to me, while Intrinsic thinks the opposite will hold true. One month avatar control for the loser's avatar.

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Tax Amazon rightly and they will evaporate. Bezos' empire is built on unfair competition.



It's the circle of life, my friend.



WolfpackN64 said:
Tax Amazon rightly and they will evaporate. Bezos' empire is built on unfair competition.

Pretty sure Amazon has been getting taxed correctly for a few years now. Sales tax is collected for every state they do business in. They used to not be, but I believe they are now.

Any Tax loopholes Amazon is doing right now would be of the following nature: They plan to build a new plant and decide to built it in either Oklahoma or Tennessee. Whichever state gives them the best incentive to build there gets them. That would be their low tax payments. A state government agreeing to collect less.

That would be on the government to stop doing shit like that. I hate when I see some new bill being passed after it gets the votes it needs by basically paying states so much money to say yes. That's no different than what Amazon is doing.



super_etecoon said:
Make game shopping fun. Don't focus on upselling/diverting customers to used copies. Just create an environment that is comfortable full of knowledgeable, non-awkward associates who know gaming's history and its present. Remind them to check their egos and their biases at the door, and simply be good salespeople that have the consumers' interest in mind. Conduct regular tournaments, and not just for Smash or Mario Kart. Speedrun tourneys are also fun. Do cosplay contests or DIY craft contests, and don't be afraid to advertise these to the local public. Be a cultural entity and rise above the standard model.

Reward customers for their used purchases and still make a killing reselling to the next. Have a buyer's reward club where any 5 new purchases gets you a free used game of any value.

There are plenty of ways to create a sustainable marketplace. The fact is, gamers are rabid consumers and place like Gamestop and Toys R Us just aren't taking advantage of that ecosystem to its fullest. It takes work and dedication and energy, but it can be done. The key is the staff. Hire well. And no, that doesn't mean the same thing as pay well. The right job with the right atmosphere will make many a great employee accept a standard or minimum wage to be part of the show.

I like where you're going here. Maybe I should tell my local EB Games and Toys R Us about that. :)



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CaptainExplosion said:

With Toys R Us almost gone, and GameStop/EB Games being uncertain, I'm starting to wonder what surviving retail stores like Walmart and Best Buy can do to avoid being buried by Amazon and Shopify.

What do any of you think can be done to save retail stores?

Toys R Us is not gone because of Amazon.  The main reason Toys R Us is gone is because of the 6 billion dollar leveraged buyout of the company that took place in 2005 which instantaneously saddled Toys R Us with 5 billion dollars of debt.  The interest payments alone on that debt were 400 million dollars per year.  That Toys R Us was able to continue its operations into 2018 under that debt load is nothing short of a miracle.  Leveraged buyouts ruin companies.



flashfire926 said:
Gamestop really got lucky with the Switch success(They havent closed a store since June 2017 in the States IIRC), because Nintendo gamers lean more towards physical than xbox/playstation (especially with that paltry 32 gb space on the console).

Their 2017 holiday was much better than the 2016 holiday as a result.

However, this only stalls the eventual shutdown temporarily, and doesn't prevent it.

With its mandatory installs, my 500 GB Xbox One needed an external hardrive in less than a year.

Also, Gamestop's bread and butter sales come from it's used games.  Microsoft tried to put a stop to that during the Xbox One launch, and we all saw the consumer backlash that occurred.  



Best Buy and Walmart are just fine. They'll never be in any real danger. They're too big. Gamestop is an uncertainty but i still feel like they're fine too.

ToysRUs put themselves in their own hole due to a poor managed company from top to bottom. They were around longer than they should've been.

Now that they're out of the way, were seeing people like KB Toys pop back up and give it another shot.



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PwerlvlAmy said:
Best Buy and Walmart are just fine. They'll never be in any real danger. They're too big. Gamestop is an uncertainty but i still feel like they're fine too.

ToysRUs put themselves in their own hole due to a poor managed company from top to bottom. They were around longer than they should've been.

Now that they're out of the way, were seeing people like KB Toys pop back up and give it another shot.

Never heard of KB Toys, so I don't know if they'd have all my preferred toy brands.



A lot of the big retailers like Walmart will be just fine considering all of the things they sell, however, more dedicated gaming stores will really have to start diversifying in order to stay afloat. Maybe selling TVs, computers and computer parts will help they stay relevant as the demand for those will still be there.