How Toys ‘R’ US missed the boat

By Jerry Bellune

Years ago, we loved a local grocery store.
Actually it was the two grocers we loved.
You could have the worst day of your life.
Your dog or your spouse had left you.
So you went to their store for therapy.
They would have you laughing in 30 seconds.

Giant supermarkets began to invade their turf.
The competition had lower prices and greater variety.
The brothers didn’t change their business model.
Competitors siphoned off their customers.
When they retired, they couldn’t sell their business.
They didn’t even own the real estate on which it sat.
On a small scale, this is a bit like Toys ‘R’ US.
Toys ‘R’ US had a great business model for its time.
Unfortunately their top brass made three mistakes.

1. They bought a lot of real estate for their stores.
That was smart. Real estate’s value usually escalates.
But their heavy debt frightened lenders and investors.
2. They borrowed more for land and stores.
They wanted to grow fast to beat competitors.
They used their real estate as assets to borrow more.
Then the internet and Amazon changed everything.
3. Toys ‘R’ US missed the retail revolution.
Sure they had a web page where you could order toys.
But they failed to offer complimentary features.
They didn’t make a visit the experience kids love.
They ignored what Disney and Amazon did.
Now they are in bankruptcy court.
The lessons from this are obvious.

1. Don’t load yourself with debt or grow too fast.
Debt will cripple you and erode your resolve to win.
2. Watch the competition and learn from them.
Whatever they do, do it even better.
3. Make shopping with you a great experience.
Memorable experiences turn customers into advocates‘

Special offer for you, our reader
Would you like a copy of “30 Days to Incredible Sales”?
This little eBook can change your income and your life.
It gives you one secret a day for 30 days.
Using one secret a day will boost your income rapidly.
For you the $20 book is only $10.
Call Rose with your credit card at 803-359-7633.

Next: If you can dream it …
Copyright 2017, The Bellune Company Inc.
http://jerrybellune.net/how-toys-r-us-missed-the-boat/