Excerpted from REBusinessOnline story.
Other retail experts agree that competition in the marketplace is coming from all directions. “Even Barnes & Noble has gotten into the game by adding a large assortment of toys to their sales floor,” says Monetha Cobb, managing director of Franklin Street’s Atlanta office.
Online sales of toys have picked up in recent years, and are continuing to increase. According to a survey from Fung Global Retail & Technology, roughly 14 percent of consumers said they preferred online shopping in 2016, up from 7 percent in 2011.
“An integrated e-commerce platform with better consumer service and unique offerings remain the biggest in-store problem,” says Emil Gullia, executive vice president and principal of Atlanta-based Retail Specialists. “Many big boxes are pushing price as the only catalyst for a visit. That is not enough of an appeal to anyone compared to the convenience of e-commerce.”
Robert Granda, director of retail investment sales at Franklin Street, agrees that convenience tops consumers’ wish lists. “In the advent of major competition, Toys ‘R’ Us has become less convenient for today’s shoppers who are looking to accomplish as much as possible under one roof,” he says. “As e-commerce continues to show its direct impact on many of these ‘dinosaur’ retailers, we can and should expect that this certainly won’t be the last big name to consolidate and really take inventory of performing and non-performing locations.”
