Josh Sigurdson talks with author and economic analyst John Sneisen about the inevitable downfall of Toys “R” Us as the chain plans to close potentially all stores by next week if not in the coming year.
The company filed Chapter 11 bankruptcy in September, falling from par to pennies on the dollar. The company was LBOed for $6.6 billion in 2005. Well so much for those games, the Christmas season did not suffice and Toys “R” Us is done.
So there’s a reason for this. A few reasons…
One is automation. Companies like Amazon are obliterating retail competition by making everything more affordable online without having to go to the store and being able to stock more. It certainly helps that Amazon has gotten billions from the government over the years. More government sanctioned monopolies.
The other reason this is happening is due to the fact that there is vast poverty wiping out the middle class, from the central banking system down to government and bank destruction of the free market. People in poverty cannot afford to spend a fortune on worthless plastic junk at Toys “R” Us. They’re far more easily able to buy cheaper toys from Walmart, The Dollar Store or Amazon. The fundamental value is no longer there. Parents are more concerned with putting food on their table for their children and of course heating the home in the winter. We can’t forget that kids as young as 7 or 8 these days have smart phones and aren’t as interested in plastic toys anymore.
Some may call it the down fall of society. Others, the demand of the markets. Others may simply call it the future. One way or another, Toys “R” Us is saying goodbye. They’re not the first, and they won’t be the last.
Stay tuned for more from WAM!
Video edited by Josh Sigurdson
Graphics by Bryan Foerster and Josh Sigurdson
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