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Forums - General Discussion - How Can Retailers Survive?

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.



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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.



NND: 0047-7271-7918 | XBL: Nights illusion | PSN: GameNChick

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.



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 love going to my local game store, it's like walking into a little museum with games and systems dating back to the snes. They also sell tons of game related toy and collectibles as well as board games and of course lots of Pokemon stuff. The people there take the effort to know their regular customers and I don't even have to call to reserve a new system or game I like. They called me to let me know they had a Switch reserved for me.

Unfortunately the store is too small (or too full) to hold tournaments yet it's always fun to browse through old games or talk about upcoming releases. Plus they help track down limited run physical copies.

It's fine when the big electronic stores pull out of video games, and give the attention back to specialized stores. Games aren't even cheaper at best buy or wal mart, I don't know why anyone would go there over a store that actually knows about games. A good shopping experience is more than putting a bunch of boxes on a shelf.



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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.

"Too big to fail" is not a particularly sound economic prediction, honestly.

The answer to these brick-and-mortar retailers is omni-channel. They've all got to develop a strong network that makes their physical stores worthwhile. (Which Walmart definitely has and Bestbuy seems to have as well.)



Retailers are actually doing pretty fine. The problem is with game shops themselves: Big commercial shops like Walmart have everything these shops have too, which is making (video-)gameshops obsolete. They need to find other things to sell alongside their traditional products or will go the way of the dodo



CaptainExplosion said:
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.

KB Toys was around since 1922. It was the go to place here in America along with ToysRUs and places like that. They sold anything from toys,plushes,video games,etc.  Went out of business in 2009 and now since ToysRUs went bye bye,they're going to give it another shot,opening up 1,000 shops around black friday. Gonna be interesting.



NND: 0047-7271-7918 | XBL: Nights illusion | PSN: GameNChick

From what I've been reading, Walmart's going to be more than 'just fine'. They seem to be preparing for the change in the market better than anyone besides the guy actively changing it (Amazon). Store pickups, deliveries, growing online service, exploring green and automated solutions, it's like W & A are moving from opposite sides of the market to meet each other in the middle. Like others said, general retailers will be alright, but software retail has been dying for a long time.



CaptainExplosion said:

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


Use the same tactics, make promotions, lower prices and so on...

But they don't (at last stores over here don't) I occasionally go to a mall downtown for the fun of seeing people and stuff and spending some time, but I don't have any hopes as to actually buying something cause I know in advance that these big stores (at least over here) don't even try. Why would I buy a video game there? Why would I pay 70 euros when I know that I can get the same game for 40, 30 or even 20 euros online? But they never learn, no matter how much time passes, no matter how much I hear that retail stores are having a tougher and tougher time making money, you still see the same pattern, games way too overpriced, less choice than online, no special editions (or if exceptionally you see one, at the same time you see 10 different special editions online) etc...

I'm actually surprised they are still in business which means that at least some people buy their stuff there, in other words those stores are living off the ignorance of some people that will pay full price ignoring they can get incredibly better deals on line or something. Good for those stores, I don't want them to go away as I enjoy the occasional egress to walk, take the sun and see people going about their business. But I sure as hell do not plan to purchase anything at those prices when I can get much better deals online.

Last edited by CrazyGamer2017 - on 13 April 2018