Posted on Sep 21 2017

Lessons learned from Toys ‘R’ Us

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The best points from recent articles about Toys ‘R’ Us:

1. “…clearly the problem isn’t with retail itself but with the inability of legacy firms to adapt to a new model”

Retailers need to stop giving so much credence to historical / comp performance. If they want to survive, they need to let go of the past, and move forward once and for all.

2. “…the basic function of a physical location has changed…. today physical locations need to do something more”

Stores cannot just house inventory. They need to be reimagined as creative, interactive spaces where the customer can engage with products and brands. Stores need to include services, conveniences, products and experiences to be relevant to today’s customer.

3. “...now a transaction can happen anyplace, at any time”

Consumers are in the drivers seat, and make purchases anytime, anywhere. To capitalize on this behavior, retailers must combine product selection, convenience and experience across all channels and platforms.

4. “Shift your efforts to something they want more. Value never disappears — it just moves to another place” 

Start with the consumer. If the retailer clearly understands the consumers’ values and priorities, evolving and delivering on “value” will be much easier.

For more insights or strategic direction, contact Loretta and lorettasoffe@live.com 

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