Fascinating story from The Associated Press over the weekend about how the toy business is changing, reflecting how the retailing world. Whereas traditional toy retailers such as Toys R Us and K-B Toys, not to mention smaller, independent businesses, used to dominate the arena, that just ain’t the case anymore.
These days, RadioShack is selling one of the hottest toys on the market, a micro-radio controlled car. Even Starbucks sells board games on an exclusive basis.
Complicating the marketing landscape even more is the fact that Toys R Us sells toys to supermarkets such as Albertsons Jewel-Osco, and K-B sells to CVS and Sears. Lego Systems sells directly to supermarkets such as Food Lion and Stop & Shop, as well as drug chain Rite-Aid, tripling its business in the process.
These days, RadioShack is selling one of the hottest toys on the market, a micro-radio controlled car. Even Starbucks sells board games on an exclusive basis.
Complicating the marketing landscape even more is the fact that Toys R Us sells toys to supermarkets such as Albertsons Jewel-Osco, and K-B sells to CVS and Sears. Lego Systems sells directly to supermarkets such as Food Lion and Stop & Shop, as well as drug chain Rite-Aid, tripling its business in the process.
- KC's View:
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Everybody competes with everybody. While much attention is paid to the changes that Wal-Mart has wrought in the marketplace, the fact that almost any retailer can sell almost any kind of products has had as much or more impact on how companies compete.
Of course, you could argue that all these companies have gotten into these disparate areas because Wal-Mart has forced them to find new paths to traffic and profitability…and you wouldn’t be wrong.
Traditional borders aren’t just breaking down. They’ve already collapsed.
