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The impact of the Walmart sales on Ebay selling and more

2

Comments

  • gmpirategmpirate Member Posts: 1,654
    Its all on how "you" want to take it. I buy a lot but I'm generally a pretty private person and choose not to discuss it. On the other hand, I really enjoy hearing about what other people are buying and how much. To me its interesting and puts what I'm doing in perspective.

    Maybe I'm wrong, but although you claim to not care, you do come across as a bit resentful. Someone who truly didn't care, or was happy for other people, would not describe it as bragging.
  • nkx1nkx1 Member Posts: 719
    edited October 2012
    jdylak said:

    mathew said:

    ^ I forgot about the Death Star. However, even at $289 it's way out of the price range for your average consumer.


    Is it? Apple sold over 5 million iPhone 5s at an average price of $300 in just 48 hours, and they are estimated to sell 50 million of them by the end of the year.

    $289 isn't what it used to be. But I'll grant that the average consumer didn't get access to this sale, it was at an odd time of night and ran out quickly.

    But I don't think that is out the price range of the "average" consumer, whatever that might be.
    $289 is out of the price range for me, the "average consumer". Yes, I bought 3 modulars during the sale, BUT I sell things on the side which in turn lets me buy things like this. Without that, I am an "average consumer". We just bought a house 2 years ago, am having a child in March, have bills and payments and blah blah to pay. So to go out and spend $289 on a toy, would not even think of. That $289 needs to go to other things. If I didn't have my selling on the side, I would be done. But I would be very happy with what I have now. I don't understand peoples spending sometimes. I read how people BRAGGING about buying 10 of this set or clearing out a clearance row of sets. Good for you. Glad you can afford it. I have nothing against what you spend your money on. Want to wait in line to buy some $300 phone, have at it. I'm the first person flipping all you off as you cut me off at an intersection while holding that thing to your ear. Cell phones are a huge pet peeve to me. They come in a store and call the store WHILE THERE and ask where something is instead of moving those two things called legs and looking.

    Rant over. Again, I'm glad people can hoard sets and still live a nice life. That's what this country, or any is about. Freedom. But why does everything come across as a brag when it comes to buying?



    I think LFT was demonstrating that if someone can afford to pay $300 for an iphone, then it is plausible they could also afford to pay $300 for a toy (instead of and/or in addition to the iphone). I think this point is entirely valid. The point is to highlight that some or most "average" consumers have $300 of discretionary income to spend, regardless of what they spend it on. One could argue all day about which discretionary widget is of more use or value.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    ^ Yes, this...

    I'm not suggesting the "average consumer" would go out and do it, just that they could, if they decided to make it important to themselves.

    Most people would probably choose to spend that money elsewhere, be it an iPhone, or perhaps paying the kid's soccer team bill, or perhaps taking their wife/husband/family on vacation or out to dinner or whatever...

    Half of the people in the United States have Smart Phones, so it seems reasonable to me that the "average" fits into a category that has $300 to spend on *whatever*. Most wouldn't do a Lego set, but they could, if they wanted to.
  • BanditBandit Member Posts: 889
    ^ Keep in mind, most of those people got those smartphones for 'free' or at most $99, not $300. iPhones have been free with contract for a while now, as have the myriad of crummy android phones out there. Only the top of the line iPhones and android phones cost $300+...
  • doriansdaddoriansdad CTCMember Posts: 1,337
    I do not think these Walmart sales will have any impact on ebay selling whatsoever.

    As for why they are dropping prices? I believe it is part of a first salvo in an all out war for market share as Amazon steps on the turf of physical retailers by rolling out same day delivery and automated lockers. Remember what Netflix did to Blockbuster? So do the execs at Walmart.
  • DiggydoesDiggydoes Cologne/GermanyMember Posts: 1,079
    To me the question is,why do you guys in the US get those incredible clearance prices? Over here in Germany these kind of prices are almost impossible to find!
  • krklintkrklint Member Posts: 502
    @Diggydoes, I am not positive, but I know the German gov't has greater restrictions on sales than in the U.S. - to create a "fair market" for other competitors. As @doriansdad is pointing out, there is a turf war going on.

    I studied about this issue in an international economics class I was enrolled in a few (or more) years back (hence my only sketchy knowledge of German business practices).

    Wal-Marts in the U.S. will price-drop to a point where smaller competitors cannot compete and go out of business. Amazon has taken that model to a national level. The German gov't (and bless them for this) does not allow Wal-Mart to carry out this small-business destruction tactic due to a core knowledge that small business is better for a society than 1 to 4 major outlet centers.

    You do not gain these amazing sales because your gov't understands your way of life is better when small businesses succeed. Only problem, Lego has a purchase-start point, which keeps the "little guys" out of the Lego resale business.
  • DiggydoesDiggydoes Cologne/GermanyMember Posts: 1,079
    @krklint
    Hmm i never thought of it from this pov! Makes sense but makes it pretty hard to compete as a BL-seller on the international market (i've already gave up to try to beat US-competitor prices!)!
  • gmpirategmpirate Member Posts: 1,654
    krklint said:

    @Diggydoes, I am not positive, but I know the German gov't has greater restrictions on sales than in the U.S. - to create a "fair market" for other competitors. As @doriansdad is pointing out, there is a turf war going on.

    I studied about this issue in an international economics class I was enrolled in a few (or more) years back (hence my only sketchy knowledge of German business practices).

    Wal-Marts in the U.S. will price-drop to a point where smaller competitors cannot compete and go out of business. Amazon has taken that model to a national level. The German gov't (and bless them for this) does not allow Wal-Mart to carry out this small-business destruction tactic due to a core knowledge that small business is better for a society than 1 to 4 major outlet centers.

    You do not gain these amazing sales because your gov't understands your way of life is better when small businesses succeed. Only problem, Lego has a purchase-start point, which keeps the "little guys" out of the Lego resale business.

    Keep in mind the perspective of the people teaching these classes. And if there is a price war going on, the consumer wins with lower prices.

    Generally speaking, a smaller business "can" provide better service and a more specialized environment than a big discount retailer like Walmart, Costco or Target. The more discretionary income people have the more likely they can and will afford the services of a small business. Start to put the squeeze on people's pocket books and price will win out.

    There are countless examples of this in almost every industry. Take the food service industry for example, where there are countless rules, regulations and cost increases made by the government which increase every year. The results of this are fast food chains. These chains can secure better discounts and provide a lower quality, price driven product. It becomes increasingly difficult for smaller mom & pop businesses to make it in this industry when more and more consumers are driven to price rather than quality.

    Governments continue to collect more of people's incomes which in turn produces and environment for big discount retailers to come in and take over because they can provide a cheaper product. Then the government comes out with artificial cost increases and price ceilings to further compound the problems and drive smaller businesses out of business because they cannot absorb these new costs. Then what is their answer to the resulting problems? Well of course we need a "fairness" law. Now they can force the prices of all retailers back up and of course that's what we want right?

    There are still small businesses succeeding in wealthier neighborhoods where people have more discretionary income but these areas are shrinking. Every single independent toy shop I know of exist only in wealthier neighborhoods. The point here is let people keep more of "their" money and there will be a place for smaller businesses. Take it away and we become a more price driven society. Governments are limiting the choices we have and then we as consumers are making those final decisions on where we spend our money.
  • BrickarmorBrickarmor USAMember Posts: 1,258
    Not to reignite any flame wars (or beat the same dead horse), but if each AFOL bought sets for resale at a level commensurate with an individual's (or family's) physical building capacities rather than stockpiling ABS like it were the key to world salvation, we would all be fine and that ethereal hallucination we glibly call "the aftermarket" would take care of itself.

    Ex: last year's IF pays for last year's IF & this years Haunted House. Not last year's IFs pay for this year's refinancing because of last year's IFs. For those of you making or attempting to make a full scale business selling retired sets, you are performing an elaborate gamble and have every reason to be anxious. In pursuit of becoming the Walmarts of the aftermarket the conditions of collecting and reselling are being volumetrically altered. And there is a fair amount of unacknowledged doublethink going on as a result. In the morning: "Resellers are a drop in the bucket! A fraction of a percent!" In the evening: "I can't help but think that resellers are buying up all the Lloyds and Death Stars." No reason for anyone to take affront over this old saw, just saying. If even I've jumped on the reseller bandwagon to recoup the money I spend on LEGO for myself and my son, sheesh, who won't? It's common knowledge that after a spate of clearance in B&M stores eBay prices are driven down by those we deride as "quick flippers." Multiply this by x to the nth power...
  • BrickarmorBrickarmor USAMember Posts: 1,258
    edited October 2012
    @gmpirate Governments (namely, ours in the US) continue to put the squeeze on the "little man" because the government itself is in the death grip of the "big men." My apologies to the mods for kindling this incendiary off topic material.
  • mathewmathew Member Posts: 2,099
    Just keep in mind that the vast majority of average consumers were not able to take advantage of these sales because they happened in the middle of the night and sold out quickly. Really its nothing more than a blip on the radar.
  • doriansdaddoriansdad CTCMember Posts: 1,337
    gmpirate said:



    The point here is let people keep more of "their" money and there will be a place for smaller businesses. Take it away and we become a more price driven society. Governments are limiting the choices we have and then we as consumers are making those final decisions on where we spend our money.

    Actually history shows in the USA a higher marginal tax rate always leads to a larger growth in employment and prosperity. It may sound counter-intuitive but if you are a corporation or business owner and your choice is to pay 75% - 90% of additional net income in taxes or re-invest in your business and employees the choice is clear. We had a top marginal tax rate of 90% from the 1940s - 1960s when the middle class in this country was born. Unfortunately a middle class is not a natural phenonomen of a free market economy and requires continuing government intervention to exist. Without trickle up economic policies there is no middle class. Trickle down leads to a very small upper class and a huge lower class willing to sell their labor very cheaply - sound familiar?

    Brickarmor
  • madforLEGOmadforLEGO Chicagoland USMember Posts: 10,649
    edited October 2012
    First off, why does a thread about a retail store selling toys on sale have messages about government this and that.. lets keep on topic please.
    If I want to read about partisans and their views Ill go to any number of 100 news sites.

    As for these sales.
    This is not the first time Walmart has done sales like this, just I think the first time in a long while.
    I also think that this may be due to getting both sets that are EOL out of their warehouses and to clean up space for other items for Christmas (as Im guessing Mod sets and DS take up A LOT of room in their warehouses)
    Maybe Walmart is deciding to stop selling mods.. Maybe they are somehow competing against LEGO and TRUS October sales push. I dunno about you, but with Amazon price matching Walmart almost punch for punch I have no money for buying over priced TRU LEGO sets to get a figure collection that is retailed for far too much ( I believe their flyer says it 'retails' for 25)
    I'm also guessing the majority of the people buying at these sales are in fact resellers.. At least Amazon.com TRIES to thwart someone from buying 10 town halls

    Who knows, all I know is I am enjoying getting good sets for lower prices.

  • krklintkrklint Member Posts: 502
    edited October 2012
    @gmpirate,

    Keep what in mind of the people teaching those classes, exactly? Truth be told, consumers will move towards the lower price, but consumer purchasing in such manners does allow for a rise in "big box" stores. Big box stores use their wealth to close out smaller shops. Also, such actions do lead to fewer employment opportunities and a trend towards a lower overall salary for specific types of skilled workers.

    In Germany, and this was my point, the Gov't there recognizes the overall benefit of not allowing large businesses (like Wal-Mart) to drop prices below original purchase price, to protect the existence of smaller businesses and to thus retain both a semblance of community as well as a more diverse and strengthened overall economy.

    The perspective of the class I studied was to help one realize that a less-varied outlet of business can equate into a weaker economy for a nation; and due to Gov't policy in Germany, the sales talked about in the U.S. do not exist in Germany. On the flip side Germany has the ability (as seen within the varied economies of Europe today), to overcome economic downturns compared to other nations without such Gov't protections within the field of competition.

    There was no underlying motive of my instructor. There was a strong awareness to look at, critique, and study the rhetorical implications of regulation versus deregulation within economic models of recessions/depressions in contrast to times of wealth and economic growth.

    Lego sales differ from country to country based on Gov't intervention, yes. Consumers will often move towards the best price (when no other reasons to purchase/not purchase exist. In the end, though, the sales seen in the U.S. are not necessarily a benefit to the whole U.S. economy, but they are a benefit to individual purchasers and resellers.

    Ok, leaving the forum for a while - timing myself out to do some building with my final BAM grab bags :( now that Grab Bags are retired.
  • tamamahmtamamahm Member Posts: 1,986

    ^ Yes, this...

    I'm not suggesting the "average consumer" would go out and do it, just that they could, if they decided to make it important to themselves.

    Most people would probably choose to spend that money elsewhere, be it an iPhone, or perhaps paying the kid's soccer team bill, or perhaps taking their wife/husband/family on vacation or out to dinner or whatever...

    Half of the people in the United States have Smart Phones, so it seems reasonable to me that the "average" fits into a category that has $300 to spend on *whatever*. Most wouldn't do a Lego set, but they could, if they wanted to.


    This is a conversation that often comes up on another 'exclusive' toy line board that I read. There are a number of people that have stated friends/family don't know how they could spend that much money or find that much money, and they have stated it comes via the above and prioritizaton. They forego other items to invest in their hobby. It isn't about foregoing necessities, but luxuries that disguise themselves as necessities. They also acknowledge that it is not the path for everyone.
    In addition, I have also seen that a number of people have really had to cut back with their hobby in the past few years due to the economy. Basically, while what LTF states I think has a good amount of merit, I think there is less and less room for that.

    I think the one thing that is obvious is that Walmart does seem to be changing things up for the holidays. Between their to floor plan change and this recent sale, something is a foot. I just do not know if it cutting back on luxury items or creating bigger price drops to compete with Amazon, or both.

  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    Something to consider regarding competing with Amazon.

    Walmart does not have to make a profit on Lego itself, if the drop in prices drives a customer to buy other items at the same time, or to change their shopping habits to take a look at Walmart.com instead of, or in addition to Amazon.com when buying online.

    Perhaps Walmart is using it as a loss leader to drive traffic to Walmart. After all, we're still talking about it, and probably will for some time to come. That has value to Walmart as a company beyond just a few items sold.
  • AmberylAmberyl Member Posts: 193
    There is a huge difference in the demographic of Walmart.com vs Amazon.com -- Amazon shoppers are better-educated and have much higher incomes. Discounting expensive items is one clear way that Walmart can lure people who would otherwise exclusively shop at Amazon to try Walmart.com. (This was true for me, for instance -- I would have never considered buying anything from Walmart until there was a great Lego deal, and so that was my first purchase from them. If they'd done a great job, I would probably have bought other stuff from Walmart.com in the future; since they did a terrible job, I don't think I'll ever buy anything from them in the future.)

    Income disparities in America are pretty large, and especially so if you take into account cost-of-living. $300 will pay the mortgage on a decent house in many parts of the USA. You can't even rent a room in most of NYC for $300 (the average rent on a 300 sqft studio in Manhattan is about $2,000/month). A marketing manager with an MBA and 5 years of experience at a retail chain's HQ probably makes 10x what an hourly store employee at that chain makes. Where you sit on that pay-and-cost-of-living scale will hugely affect your perception of the relative value of a $300 Lego set.
    The_Mack
  • Pitfall69Pitfall69 0 miles to Legoboy's houseMember Posts: 11,454
    mathew said:

    Just keep in mind that the vast majority of average consumers were not able to take advantage of these sales because they happened in the middle of the night and sold out quickly. Really its nothing more than a blip on the radar.

    My feeling exactly. Even the shrewd aftermarket resellers miss out on these type of sales for a number of reasons. Last year's TRU BOGO 50% I was unable to snag 2 Pet Shops because they had already been sold out. I thought it was crazy because I was online as soon as the sale started and they went from in stock to sold out. A few people claimed they were able to buy them.

  • mathewmathew Member Posts: 2,099
    ^ I'd like to know where I could find a decent house and only pay $300 a month mortgage. Heck, show me a decent apartment for that much. Maybe Mississippi?

    As far as online shopping goes, I don't think there is that much disparity between Walmart and Amazon shoppers. Like LFT stated (and I as well), this might be part of Walmart trying to get a piece of Amazon's pie.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    :) $300 might be a bit thin, but I'm sure someone, somewhere has one...
  • rocaorocao Administrator Posts: 4,290
    Ok, another Buying and Selling topic firmly derailed. I'm not sure if it's the cast of characters, or the nature of the topics, or both. We have to remember that this is intended to be a forum for discussions about LEGO. We're not trying to run a police state and I personally find some off-topic discussions interesting and full of insight, but there are members here strictly for LEGO discussions and when they complain the conversations are veering off-topic too far and too often, we are compelled to moderate.

    As you all know, the "Predictions on Discontinuing Sets and their Secondary Market Value" has become the containment thread for these types of random musings. It allows the discussion to continue while we ask uninterested members to simply look away. Let's try to keep it that way.
    LegoFanTexascheshirecatRenny
  • nkx1nkx1 Member Posts: 719
    edited October 2012
    ^Haha, I'd also like to find a halfway decent house for $300/mo. Heck, I'd like to find a halfway decent house for $500k here in Orange County. At 4% interest, you could buy a $63,000 house on a 30yr mortgage for $300/mo. Of course, that doesn't include insurance, taxes, PMI, etc, so you could really probably only afford a $20,000 mortgage for $300. Aside from some very lower income pockets of the country, I can't imagine there are many places you could get a house for even $63,000. And I don't even think you could rent a sleazy motel room for $300/week, much less rent an apartment for $300 per month.

    I also agree that there may be little difference between online shoppers of Walmart and Amazon. Store shoppers may be a different story. My wife and I are what you might call well-educated. While we don't shop at Walmart stores much (except during Lego clearance time), I buy Lego online there a fair amount, probably almost as much as Amazon. Generally speaking, I think any halfway intelligent person will shop wherever the prices are lowest; it probably matters little if that place is Walmart or Amazon (this statement obviously excludes the uber wealthy).
  • Pitfall69Pitfall69 0 miles to Legoboy's houseMember Posts: 11,454
    @rocao

    It wasn't me :)

    I also enjoy the off topic banter from time to time, but I understand. As far as the Aftermarket thread, there might just be a method to our madness when it comes to that :)
  • rocaorocao Administrator Posts: 4,290
    I suppose since we're already off-topic, I'll answer: the median home price in Detroit is $60k, and there are more affordable cities, mostly in the midwest and south.
  • nkx1nkx1 Member Posts: 719
    edited October 2012
    Duly noted, rocao. Please delete my post above.
  • weaselkingweaselking Member Posts: 61
    [Attempting to move topic back on track]

    Wait, they have 10199 listed for $59.97 (obviously out of stock)--has anyone here picked up any at that price? Just curious.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    @rocao - It wasn't me this time, I swear! :) Or I hope...
  • momof2boys99momof2boys99 Member Posts: 322
    Off topic...but adding to the ongoing conversation. I have some very well educated wealthy relatives. They shop at Walmart and Kmart. They will go where they can find the cheapest prices. So, I don't think all wealthy people avoid Walmart. My relatives that have lots of money have it because they spend it wisely and shop smart. I can honestly say, we had a flat screen tv before they did. They don't have laptops or iPods or iPhones. They all live in beautiful houses, but are picky about how they spend their money. So, I just wanted to add that not everyone with money shops Amazon and avoids Walmart. Either that or I have a weird family. ;)
    LegoFanTexas
  • BrickarmorBrickarmor USAMember Posts: 1,258
    My pet name for Walmart is The Great Satan. A decade ago my wife and I helped organize a nearby town's successful opposition to the building of a new store. And this year Walmart turned my opposition into tattered hypocrisy because of what? Yep, ridiculously irresistible underpriced LEGO.
  • AmberylAmberyl Member Posts: 193
    Quantcast will show you the difference between shoppers at different onlne sites:
    http://www.quantcast.com/amazon.com
    http://www.quantcast.com/walmart.com
    http://www.quantcast.com/toysrus.com
    http://www.quantcast.com/target.com
    http://www.quantcast.com/lego.com

    You might find the differences pretty interesting. It's not that people with more money entirely avoid Walmart, of course. But they do have different preferences, even online where the switching cost between two retailers is fairly minimal (though Amazon tries to lock that up with Prime shipping).

    (Side note: $300 for a mortgage in places like Mississippi, Oklahoma, etc.)
  • meyerc13meyerc13 Member Posts: 227
    I think the reason that we are seeing these Wal Mart, Amazon, and Target sales is to steal some of TRU's thunder. Normally the only deals we would be talking about in October are TRU. With TRU's jacked up prices, this year I haven't given them a second thought. With the exception of a few Collectible Minifig purchases, almost all of my LEGO shopping has gone elsewhere this year.

    Think about it... we know that LEGO is one of the top selling toy lines in the US, and TRU devotes an entire month to LEGO sales. But this year with their overpricing and restrictions, TRU has turned off a lot of the big LEGO shoppers. By offering up such outrageous deals, Wal Mart is stealing some customers that would normally be dropping a few hundred at TRU in October.

    I don't know about you, but normally this time of year the shelves at my TRU are bare because these sales clear the shelves of everything worth getting. This year, I can hardly tell there is a sale going on the shelves are so full. If Wal Mart has truly set their sights on TRU, this may not be a good omen for the future of TRU. If Wal Mart can take out TRU, they won't need to sell these sets at such huge discounts in the future because they will have eliminated one of their biggest competitors.
  • rocaorocao Administrator Posts: 4,290
    The stores will always naturally try to compete on some level. But I think if this were a deliberate response to upstage TRU's bricktober, Walmart would have structured it and advertised it to get a lot more attention, as Target is now doing.

    There is no banner on Walmart.com. Half the sets on sale weren't even listed or searchable from the Walmart engine. The final price drops happened around midnight Pacific Time when most the US is asleep.

    And an in-store sale with an ad in their circular should supersede the online campaign, or at least accompany it.
  • BanditBandit Member Posts: 889
    ^ Yeah, exactly, I can only see this as WM trying to clear out some slow moving inventory, whether to make room for other inventory, to get it off the balance sheets, or to add to sales for their current financial quarter...
  • DaddyDeuceDaddyDeuce Member Posts: 272
    I had already completely blown my budget in September on LEGO, but these prices are just too insane to pass up. Picking up a few more because I can't help myself, but seriously, I don't understand what is happening with Walmart's prices.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    rocao said:

    There is no banner on Walmart.com. Half the sets on sale weren't even listed or searchable from the Walmart engine. The final price drops happened around midnight Pacific Time when most the US is asleep.

    And an in-store sale with an ad in their circular should supersede the online campaign, or at least accompany it.

    I don't think this is to target TRU, more to promote Walmart.com.

    Think about it... This sale is at odd hours, hard to find, you have to search...

    In October, what would Lego and toy and "deal" forums like slickdeals be talking about? TRU and Amazon's price matching, right?

    What are we all talking about instead? Walmart. On a Lego forum. In October.

    Whatever this sale has cost Walmart, the above has a value attached to it, this might be a bargin in Walmart's eyes, talk about gorilla marketing!
  • rocaorocao Administrator Posts: 4,290
    edited October 2012
    ^ I was addressing the suggestion that the sale was a deliberate attempt to "steal the thunder" from TRU. I don't dispute that a sale is an attempt to gain mindshare and loss leaders exist with the hope of spawning additional sales. Those are universally accepted retail principles.
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    I see what you're saying... But why steal the thunder from TRU, why not just run them out of business? Walmart could expand the toy isles in the stores, run local ads, and undercut TRU far enough to suck out their sales for Christmas.

    Does TRU get most of their business from online, or retail? Walmart is almost all retail, Amazon is of course all online, where does TRU fit in?

    If I were Walmart, I'd be MUCH more focused on kicking Amazon's butt than anyone else. In that regard, if Walmart is serious, they need to copy Prime, with the admendment that instead of 2 day shipping everywhere, they just need free 3-5 ground shipping, so Walmart doesn't need 52 warehouses everywhere.

    Walmart is 5 times larger than Amazon, they could do it if they put their mind to it. Need better customer service and a better web site first however. :)
  • rocaorocao Administrator Posts: 4,290
    ^ I'm not sure you do see what I'm saying. I'm saying "It is NOT likely the Walmart sale was a direct retaliation to TRU's bricktober"... and you are following by saying "But why would they bother retaliating?"
  • LegoFanTexasLegoFanTexas TexasMember Posts: 8,404
    ^ Hmm, I must be hungry, or need more coffee...

    How about this:

    You're right, I agree with you, you win! ;-)
    momof2boys99
  • momof2boys99momof2boys99 Member Posts: 322
    One thing I can add.....there are a lot of happy Lego customers out there. Amazon, Target, and Walmart have made these last few weeks fun. I did not go overboard, but wow. I missed several price drops...but how can anyone complain? I did get some items and that was exciting!
  • doriansdaddoriansdad CTCMember Posts: 1,337


    If I were Walmart, I'd be MUCH more focused on kicking Amazon's butt than anyone else. In that regard, if Walmart is serious, they need to copy Prime, with the admendment that instead of 2 day shipping everywhere, they just need free 3-5 ground shipping, so Walmart doesn't need 52 warehouses everywhere.

    Walmart is 5 times larger than Amazon, they could do it if they put their mind to it. Need better customer service and a better web site first however. :)

    Walmart is completely focused on Amazon. When Amazon brought out their lockers Walmart brought out shipping to Fed Ex locations. Next summer this will give Amazon a physical footprint in every state across the country. Couple this with same day shipping and Amazon has the instant gratification they were missing. Amazon will redefine the way consumers shop in the USA just as Netflix did with the consumption of video content. I would expect the market cap of Amazon to surpass Walmart within 10 years. Your Walmarts, Targets, TRU and Best Buys should go the way of the dinosaurs.

  • gmpirategmpirate Member Posts: 1,654

    Off topic...but adding to the ongoing conversation. I have some very well educated wealthy relatives. They shop at Walmart and Kmart. They will go where they can find the cheapest prices. So, I don't think all wealthy people avoid Walmart. My relatives that have lots of money have it because they spend it wisely and shop smart. I can honestly say, we had a flat screen tv before they did. They don't have laptops or iPods or iPhones. They all live in beautiful houses, but are picky about how they spend their money. So, I just wanted to add that not everyone with money shops Amazon and avoids Walmart. Either that or I have a weird family. ;)

    I agree. People don't get wealthy by being frivolous with their money.

    Personally, I have never been a Walmart shopper. There's really nothing there in particular that I would be interested in and I generally do not like the feel of the stores. I feel nothing against Walmart, but I don't do the shopping for the family, other than Costco, and there are just other places that suite my needs better. That being said, I now go to Walmarts regularly (online too) because of Lego. And as a consequence I do wind up buying other items while I am there.
  • DaddyDeuceDaddyDeuce Member Posts: 272

    Your Walmarts, Targets, TRU and Best Buys should go the way of the dinosaurs.

    I personally think that Best Buy is a "dead brand walking". The only value add they have left is selling technology products that require a high level of customer contact to help the customer make the decision. But they can't stop the customer from making up their mind, then leaving the store and completing the purchase online. The model works for the Apple Store because Apple wins no matter where the sale is consummated, but I don't see how Best Buy really competes in this space anymore. I also don't think that Best Buy culturally is able to make the changes they need to.

    I can see TRU surviving for a long time because they are the "superstore of toys". Giving a six-year-old an Amazon gift card just can't compete with giving them a TRU gift-card (assuming they have a nearby store). Kids are all about the physicality of the shopping experience. But they might end up having their retail presence reduced to only the major markets. I don't think every suburb can continue to support a store the way it is now.

    Walmart, Target, and Amazon are going to compete fiercely for what is left of retail. Walmart and Target are smart companies and I believe they have the ability to adapt. Each of them seem to run their retail stores and their online sites as separate businesses, I'd like to see what they can do when they get around to running them as a seamless operation - every single store serves as a warehouse, a shipping center, a distribution center, etc.
  • sidersddsidersdd USAMember Posts: 2,432
    Seems like more and more Targets are adding a grocery section (not just the larger superstore Targets either) - trying to give you another reason to shop there.
  • mathewmathew Member Posts: 2,099
    Best Buy has improved some lately. Primarily in the pricing department. To stay afloat they will have to continue being more competitive with pricing.

    The trick is to specialize. Target and Walmart both have their "brands" and differing shopping experiences. Best Buy could do better by offering specific products not available elsewhere. They were on the right path with the Magnolia microstores (high-end audio and tv), but then the economy tanked. Maybe they should start selling Lego? ; )
  • gmpirategmpirate Member Posts: 1,654
    I just don't see Best Buy making it as it is. They don't carry anything that you cannot get online and normally at a cheaper price. Walmart and Target carry things we need "here and now" -- daily consumables. Unless you are a video or audiophile that just has to experience the product first, why would you need to go to Best Buy? At least for me, I go online, read reviews and ratings and then make a decision.

    In the past, I have always bought electronics at Best Buy over Walmart and Target because they carry the higher end products. I still would not buy electronics from Walmart or Target because they do not offer the better products, but other online retailers like Amazon are more attractive for pricing and speed of delivery.

    I agree with @mathew that Best Buy needs to establish some sort of edge or identity. Right now they are not unique, are more expensive and they have a lot of b&m overhead.
    dragonhawk
  • dragonhawkdragonhawk USMember Posts: 633
    edited October 2012
    ^The only time I bought from Best Buy in the past 2 years was to get their online only Black Friday deals. Their b&m stores are there for free in store pickup. I wonder how many people shop this way.
    I agree to survive, Best Buy needs to adapt. The overheads for their be all end all electronic center model is literally killing their business.

    As for OT, these sales at Walmart were such a small scale without any publications. This was equvalent to Walmart b&m putting their LEGOs on clearance at the end of August.
  • gmpirategmpirate Member Posts: 1,654
    ^ me too, kitchen tv last year. Or I will jump for the iTunes discounts if I see them.
  • AmberylAmberyl Member Posts: 193
    TRU is overwhelmingly retail, not online. Nearly 50% of all toy purchases are from the mass-market chains. Only about 10% of toy purchases are online, period.
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