Posted on 03/20/2018 8:40:52 AM PDT by SeekAndFind
If you're a parent, you've had at least one passing discussion on the closure of Toys R Us. The mega-giant toy chain that ruled the childhoods of many of today's parents is shuttering nearly 200 stores this month. While bankruptcy is the official reason, it isn't the only or perhaps even the biggest reason why Geoffrey the Giraffe is being sent to the big zoo in the sky: Debt. Competition from online retailers like Amazon, as well as cheaper big-box stores like Wal-Mart and Target. Yes, bad customer service, too. All of these are the most commonly cited reasons for the ultimate failure of Toys R Us. But, hidden within their press release on the bankruptcy is a reason rooted in cultural trends, the stuff that ultimately makes or breaks economic indicators:
The decrease of birthrates in countries where we operate could negatively affect our business. Most of our end-customers are newborns and children and, as a result, our revenue are dependent on the birthrates in countries where we operate. In recent years, many countries birthrates have dropped or stagnated as their population ages, and education and income levels increase. A continued and significant decline in the number of newborns and children in these countries could have a material adverse effect on our operating results.
In other words, Americans just aren't having enough kids to justify the existence of that many toy stores.
Play out the low-birthrate factor and you'll realize that fewer kids over time equates to fewer consumers overall. Ten or twenty years from now we might see the same massive closures of the stores that are winning out over Toys R Us today. It isn't just that people are buying less due to the Great Recession. It's that there are fewer people to go out and buy anything at all. As The Washington Post reports:
The change in the number of children born in the previous 12 years (and thus sitting right within the Toys R Us demographic), tracks closely with the companys changing annual revenue. ...its nonetheless apparent that Toys R Uss fortunes rise and fall with the population of its target market.
And thats why the companys demise should worry the rest of us. Toys R Us focuses on kids, so its feeling the crunch from declining birthrates long before the rest of the economy. But its just a matter of time before the trends that toppled the troubled toy maker put the squeeze on businesses that cater to consumers of all ages.
In stark contrast to their failure in the American market, all 53 franchised Toys R Us stores in Israel will remain open. Israel is known for having the highest birth rate in the developed world. The average Israeli woman has three children, nearly double that of the average American woman. The Israeli fertility rate of 2.6 exceeds both the American rate of 1.9 and what's known as the "replacement rate" of 2.3. The "replacement rate" is what a nation needs to maintain in order to ensure long-term survival.
....and there it is.....homo or just a hater, can't tell which...
but its always the vimen...always...
the women are sick of the rape and divorce too, along with the porn...
Best Buy is very good about price matching competitor online pricing, I think it’s a policy other box stores would be wise to consider.
just a ploy by the education Nazi's...
the more class rooms, the more teachers are hired and the more union dues...
in my day, the nun had up to 38 or more kids in her classroom....funny, it was always orderly...
ha. ha. ha.
ha.
I dont buy it. Bad management and Amazon.
You mean granddogs aren’t cutting it?
Good idea. Glad your nieces and nephews are doing their part.
From the article: "the American rate of 1.9 and what's known as the "replacement rate" of 2.3. The "replacement rate" is what a nation needs to maintain in order to ensure long-term survival."
Our long-term survival depends on Patriot babies.
80% of divorce filed by women, almost all women get way more out of the assets than they put in, no they are not sick of divorce.
And women are watchig more porn than ever, don’t know where you get that idea. women dont like men watching porn because it devalues the primary thing they offer a man.
Thank you, Trump Girl! I will pass that on. Right now he is getting interviews and contacts from Linked In, praise God. You are right about retail, too which I find sad because I’m one of those people that would rather buy things in person.
Not enough babies? Uh-huh, sure.
I told my 14 year old son the other day that demographically speaking he is f#cked. I am 52 years old, he is my only child. I had a client at Mt studio the other day, African American woman just a few years older than I and she said “I have 54 grandchildren”. I immediately thought of going to the polls. One upper middle class educated white kid won’t have a chance versus 54 minorities with rudimentary education.
Early? Possibly. But certainly “I” do not associate “Heinz” with salsa; they have a LOT of work to do (or a brand to buy).
We have family game day, so when we heard that Toys ‘R Us was going out of business and some stores have their stuff 40% off, we drove to town to see if we might get a couple of new games.
The last time we were in G’RU was about 20 years ago (our kids were leaving the nest). At the time the ENTIRE right and rear walls of the store were floor to 20 feet up board games. Any board game you’d want, it was family heaven!
Now? 1 SHORT aisle of young children’s board games, and a whole store full of Chinese junk. It didn’t take us long to see a major reason for their declining revenue. We bought nothing.
Toys R Us used to sell model trains in the 80s early 90s, but in 2000 they stop selling them. Independent brick and motar toy stores know more about what they sell.
Wow. :-(
Even at Christmas time I could rarely find a good reason to part with my money at Toys r us. They won’t even mention the name of the one single holiday that pays most of the bills!!! Overpriced, nothing unique about the store, no customer service. Just no reason to shop there. The kids could care less.
They need to look at the OVER PRICED products they sell, that you can get on Amazon for a fraction of that price.
Then you have to factor in the OBAMA DEPRESSION for the past 8 yrs when money was scarce and Rummage Sales and Salvation Army etc became the place to look for toys and clothes. Cost rivals Military Exchanges Highly Expensive.
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