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Forums - General Discussion - How Can Retailers Survive?

The best way would be to get timed exclusives. Say for a limited time like a month or two it is physical only and retail exclusive. However, this will need a concession, so GameStop should agree to stop selling used games.

Edit: On second thought, there's no way GameStop would compete with Wal-Mart only selling new games.

Last edited by HomokHarcos - on 13 April 2018

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brandon1546 said:

The United States is clearly "over-stored" as too much retail was built in the past 10+ years. The U.S. will no doubt go through a period of store closures and consolidation, but it won't go on forever. Stores like the Department Stores are certainly not doing well, but many other retailers are expanding.

In terms of video games retailers, Walmart, Target, Amazon and Best Buy aren't going anywhere anytime soon. Gamestop is being challenged both by the online price transparency that Amazon and others provide, as well as the trend to buy games online digitally, since this eliminates the ability to buy/sell used games. Gamestop has almost 4,000 video game stores in the U.S., and I would expect over time that number will have to come down meaningfully, but I don't necessarily think it will be a Blockbuster Video-like collapse, although that is a possible scenario.

The US definitely needs some bricks and mortar retail contraction.  You can thank the monetary manipulation of the FED for that.  With interest rates super low for the last decade, everyone levered up and expanded like crazy.  

As for Gamestop, they are being squeezed on all sides.  Pricing on new games is much better elsewhere.  Digital sales skip them on the front end, and eliminate the possibility of later used sales.  The "Think Geek" stuff doesn't carry the same margin as used games.  So, I think they'll either start scaling back the store count dramatically and fairly rapidly, or they will be at risk of the Blockbuster scenario.  I imagine they can sustain a profitable business.  They just have to read the writing on the wall and adapt before they burn through all of their cash trying to maintain the current store count.    



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.

too big doesn't exist, So many big retail names have gone down, in a similar thread I posted about how many were closed in 2017 while consumers were spending like crazy people were losing their jobs in the retailer sector:

Also kind of funny you mention Walmart: Early this year they closed more than 60 of their Sam club stores

Anyway this is a small list of what already is announced to close this year:






konnichiwa 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.

too big doesn't exist, So many big retail names have gone down, in a similar thread I posted about how many were closed in 2017 while consumers were spending like crazy people were losing their jobs in the retailer sector:

Also kind of funny you mention Walmart: Early this year they closed more than 60 of their Sam club stores

Anyway this is a small list of what already is announced to close this year:

and what I said still remains the same though. Walmart and BestBuy are not in any danger of going the way of ToysRUs at this point in time. 



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PwerlvlAmy said:
konnichiwa said:

too big doesn't exist, So many big retail names have gone down, in a similar thread I posted about how many were closed in 2017 while consumers were spending like crazy people were losing their jobs in the retailer sector:

Also kind of funny you mention Walmart: Early this year they closed more than 60 of their Sam club stores

Anyway this is a small list of what already is announced to close this year:

and what I said still remains the same though. Walmart and BestBuy are not in any danger of going the way of ToysRUs at this point in time. 

Well you said they'll never be in any real danger but they are not doing good

Walmart In Trouble

This past Wednesday, Walmart Stores Inc. saw a plunge in stock price that wiped out $18 billion of the company's market value. This happened on the back of news from senior management that the company expected to suffer a 6% to 12% earnings drop in 2017.

As Walmart continues to lose market share, other retailers benefit. And not just the Targets and Costcos of the world, either; small independent retail stores are becoming an increasingly serious threat to Walmart.

What Happened?

There are many factors effecting Walmart's decline, but some are simply too big to ignore.

Slow Domestic Growth

The goal for any retailer is to build stores that grow their sales and expand their footprint. To measure a retailer's success, we look at both the overall growth rate and the same-store sales growth.

Walmart's overall U.S. sales have not been growing as fast as overall U.S. retail sales. Only once in the past 19 quarters has Walmart grown its sales as fast as the rest of the U.S.

On same-store numbers, Walmart has seen sales fall from the beginning of 2009 to today. This is especially bad news, because during that time, the U.S. economy has been recovering and consumer spending has increased.

Failures Overseas

One might suspect that a successful U.S. retailer could expand overseas simply by repeating the process that worked domestically. In reality, it's not nearly so simple.

To begin with, a retailer has to overcome cultural differences, local shopping habits, and brand preferences. The problem becomes harder still when considering distribution networks that operate differently based on a country's infrastructure. Even something as simple as road conditions can make it difficult to get product into stores for a retailer.

Walmart has already ended ventures in Germany and South Korea. It has struggled in India, ultimately buying a local partner in 2013. There have been problems with mislabeled meat in China and disappointingly low profits in Brazil. The bottom line is that these failures impact company financials significantly.

Deteriorating Finances

Another way to measure a company's success is return on investment. This is essentially profit made on each dollar invested. Walmart's return on investment has been steadily declining since 2010 and shows no sign of letting up. Back in 2010, Walmart showed ROI of 19.25%. That number has fallen steadily to today's value of 16.25%.

Low Customer Satisfaction

Walmart's problems are deeper than cut and dry money numbers. Customer satisfaction is at an all time low. For a 2014 survey by the American Customer Satisfaction Index, Walmart ranked lowest with a score of 68 versus the average score of 88.

More troublesome still is that this is the eighth consecutive time that Walmart has ranked last. When the U.S. economy was in recession in 2008, Walmart fired around 12,000 employees. Without enough employees in the stores, customer service took a huge hit.

Online Retailers

Walmart once enjoyed a unique position of selling goods at big discounts. That uniqueness was lost with the emergence of online retailers like Amazon. Once customers started seeing that they could get good discounts from the comfort of their homes, they stopped frequenting the understaffed Walmart stores. Ultimately, Walmart lost the pricing war, as they were unable to offer better discounts than the online retailers.

Poor Inventory Management

For a long time, Walmart was not managing its inventory properly. In just the year 2013, Walmart lost sales worth $3 billion due simply to out-of-stock issues. This all came back to a faulty internal communication system. The company would run out of stock on products that were in demand, and overstock unwanted items.

So What?

For a small retailer, there is much to learn from the mistakes of Walmart. Even if a retailer isn't considering expanding to international markets or managing a multi-billion dollar inventory, there are lessons to be found in the struggles of a once mighty retail giant.

To the prospective dollar store owner, gone are the days of worry over Walmart's dominance in the retail space. Now it's Walmart who has to be concerned.






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Incorporate online shopping with delivery and exclusive goods.



Toys r us might not be dead after all. https://www.highsnobiety.com/p/toys-r-us-investment/



They can survive by making there stores more appealing. Target is doing well. I find it fun to shop at target and they have good stuff. I went to toys r us a month ago it was empty and the atmosphere did not seem fun.



Gamer147 said:
They can survive by making there stores more appealing. Target is doing well. I find it fun to shop at target and they have good stuff. I went to toys r us a month ago it was empty and the atmosphere did not seem fun.

Target didn't last long here, they were only around for a few years.