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RE: Retail Death Spiral Continues
I just don’t see how the big box retailers can compete with online sales. How can you compete with online sales when you have all the overhead from leasing out all the retail space, and paying all the people you need for customer service?
I grew up with the mall as being the trendy place to hang out. My son won’t have that when he gets into his teen years the way I did.
Online is taking over in many regards, not just retail. When is the last time you rented a movie? When is the last time you visited an arcade?
Shoot, when is the last time you went to a theater to enjoy a movie?
Online is taking over and big box stores, and other facets of retail, are going away unless they can figure out how to co-exist.
My question is, why are big box retailers not working with Amazon and eBay? Both offer affiliate links, both offer some form of partnership program. Why not work with the online stores if you can?
Best Buy is the worst for window shopping customers. Their prices are often quite a bit higher than nearby big box retailers, so much so that I will check prices at other local stores before paying at Best Buy.
Why not work something out with Amazon or ebay where if customers are in their stores, either verified through Wi-Fi use or geo location services, and get a cut of the sales from that customer over the next few weeks or whatever.
Websites do this all the time. Someone clicks an affiliate link I may make available for Amazon or eBay and for the next month, I believe, I get a cut of any purchases they make (not just purchases of the items in the direct link).
Why can't big box stores go this route as well? Some money is better than no sales.
I still go see movies on a fairly regular basis. The only reason I don't go to arcades is because there aren't any around. I think big box retailers will have to adapt but they will survive as long as they can provide instant gratification (or supply an immediately needed item) and Amazon can't. While Amazon is usually cheaper than places like Best Buy, it isn't always the case and sometimes even when it is cheaper it isn't by enough to matter. It just depends on what you are looking for and when.
I would probably still rent movies on occasion if Blockbuster was still around. Those Red Box locations seem to be doing ok though but they got rid of virtually all the overhead of movie rentals.
Best Buy has an official eBay store and some kind of partnership with Amazon to sell smart TVs (and maybe other stuff) so they are working with them to some degree. Not sure about Walmart and Target.
The theaters around me have a decent selection of arcade games in their lobbies (though you cannot access them without purchasing a movie ticket.
We have a Dave and Busters less than five minutes from my home but goodness, they are expensive (though they have new games like the Tomb Raider arcade machine).
Yeah, Red Box all but eliminated the overhead of video rentals. I know Blockbuster tried to do that years after Red Box but it failed horribly because they were only in Kroger stores around me (and there are not a lot of those).
Red Box did it right. They are at gas stations, Dollar Generals, Wal Marts, Target, random retailers, etc. They are everywhere and the whole "return the movie to any Red Box" is a plus that is hard to compete with, as Blockbuster found out.
That is interesting, I was not aware that Best Buy is working with Amazon and has an eBay store. I wonder how things are going for them with it? The whole instant gratification thing is big, especially with electronics - plus, it is a pain in the butt to return a big screen television that got damaged in shipping (and a major bummer).
I don't think Target is working with anyone. I know they have a staunch rule against resellers buying from them. They will flat out deny a purchase of a large quantity and will deny a return if they think you are a reseller (such as buying/returning 10+ of the same thing).
One of the theaters near me has a handful of arcade games but it isn't the theater I usually go to and like your you have to buy a movie ticket to get to it.
Blockbuster tried the "me too" thing with a Netflix like service also. Seems like they were always playing catch-up but never caught up.
I think there are at least three Red Box locations within a mile of my house. I don't use them that much because with Netflix and Amazon Prime I find I don't need to. I do miss Blockbuster (and to a lesser degree Hollywood Video) but I suppose its more of a nostalgia thing. My local Blockbuster was convenient though. Right down the road from my house on the way home... It's a furniture place now.
I don't think I would get something like a TV online. Of course I don't buy TVs that often. The last one I bought was my 1080p Toshiba back when the PS3 was new. The PS3 was my blu-ray player. The PS3 is dead but the TV is still going strong. I ran across Best Buy's eBay store while browsing for laptops. Seemed like there was a lot of older model and open box stuff but I didn't look into it too much.
I don't know how Target is doing financially but I know I prefer to go to Target vs. Wal-Mart. A more pleasant shopping (and parking) experience plus its closer to my house
Target is a solid number two in retail versus Walmart. They just can't quite catch up. Probably due to business models, and store availability.
I have 12 Walmart stores within 30 miles of my home. That is driving, not as the crow flies.
In that same area I have 4 Target locations. None of which are convenient to get to. Only one Wal-Mart is tough to get into regularly due to traffic. The rest are simple, quick and convenient for me.
That helps me as a reseller too.