The Year the Walmart Stole Christmas

Posted by jim on December 19, 2008 under Consumer Experience, Economics | 2 Comments to Read

Or probably better entitled, How Walmart Bought Christmas for Good in 2008.

Only BJs’ and Walmart’s sales were up in November 2008 – while every other retailer in America was down.  Let me repeat….  Walmart’s sales were up in November 2008 over last year.  The sky is falling – we are heading towards another depression and Walmart’s sales were up.  Hmmm….  Toy Industry is recession proof?  Nope.  Walmart is recession proof!

While the media has convinced everyone that the sky is actually falling, which certainly appears to be accurate, we also seem convinced that the only way a consumer can save money in these times is by shopping at Walmart.  So, Walmart “lowers prices” on all these toys and, still, they sell more dollars than last year.  While the rest of the toy retailers are down.  Interesting….

Goodbye KB (although I think we said goodbye years ago, if I’m not mistaken).  Goodbye Toys R Us.  So long E-toys (didn’t we do that years ago too?).  Adios speciality toy retailers.

Let me share a couple of stories.  We put a particular item that featured a particular superstar – a no brainer, no lose, toy item – in our Christmas flyer (of which we had 30,000 printed).  Retails for $59.99.  My cost was $49.50.  Not much markup, but a very nice, attractive item.

Big box is selling it for as low as $14.99!  I have an email in to the manufacturer – that was ten days ago, still awaiting a response.

We carry LeapFrog Didj – a great new product this year with a minimum advertised price of $89.  That means that NO ONE can sell it for less than $89.

Big box wasn’t moving enough.

So LeapFrog changed the map to way below our cost – now Amazon is selling at $49.99.  Hmm….

Define Category Killer.  One word:  Walmart.  Good for the consumer?  Save Money.  Live Better.  That’s their slogan?  Really?  Save Money.  Live Better.  Has anyone ever set foot in a Walmart and felt like they were living better?  Obviously, Walmart is talking about their customers, not their employees….  And are their customers living better?

If they are, it’s not for long.  When the category is officially killed, how low will those prices be then?  When Walmart is choosing the toys you can buy, and what you can buy them for – and no one else is around to balance….  Try to save money and live better then!

Speaking of saving money, when did that ever become the American dream?  I guess that’s another blog entry for another day…..

A Web Site does not an E-tailer Make

Posted by jim on December 8, 2008 under eCommerce | Be the First to Comment

There certainly is a lot more to being an E-tailer these days than selling products on your web site.  And I am not alluding to adwords or affiliate programs or price comparison sites or anything of the sort.  I’m talking about Amazon.

Amazon owns and buys so much of the online retail traffic these days that you can’t really have an e-commerce site without also selling your products on Amazon.com.  Even Target has an Amazon.com store.  If you google “Gile Toys”, an Amazon listing comes up in the top six results and you will see the adwords “Gile Toys at Amazon”.

Let’s face it.  Amazon allows you to use their brand to move your products.  How can any of us say no?  But my point here is not to discuss the pros and cons of Amazon – or even give an inside look on the entire process.  I don’t even want to discuss their buyer feedback process and system.

I simply want to share some of the feedback we have received lately on Amazon.com.  Not the ones that say we are really great, just the ones that make me smile.

How about this one?

“Subliminal experience. The whole family experienced a life change. I only can kneel in the lotus and pray for future business exchanges. I bid you peace.”

[insert joke here]

Or this?

“Extremely fast shipping and I know my nephew is going to go nuts over these. The only downside is that the box that it arrived in shows pictures of exactly what the item is–we’re lucky that the person it is for wasn’t at the house or he would have known what his Christmas present was. I prefer my packages to look anonymous (typical brown box, please) so I can keep holiday surprises a secret!”

Granted, we are sensitive to this – especially as a toy vendor at Christmas time, but you have to see the size of this product.  To put this box, which is actually full of individual little boxes by the way, inside another bigger box, is a bit impractical to say the least.  Can you say TMI?

Not sure why I think this is funny:

“I ordered these monkeys & they were delivered very quick & exactly what I ordered. I’m always leary about ordering online for the fact of not knowing what I’ll end up with, but was definately pleased!”

I guess anything with the word “monkeys” in it makes me laugh.

And, finally for the minimalist in all of us, how about these three:

“A”

“.”

“X”

Now that’s what I’m talking about!  For more, go to Amazon.com.