I have just got back from New York and as a soft toy wholesaler I found it very interesting (it was supposed to be a holiday but since when did a small business owner ever totally switch off!)
Firstly the news that Toys R Us has taken over FAO Swartz was not a total surprise. I was surprised how uninspiring the shop was. Again as a soft toy wholesaler I was unimpressed by the ranges and as a parent of 2 girls I struggled to find gifts. The whole shop felt like a collection of concessions and I hope that a lot of money and thought now goes in to new ranges
In terms of the USA economy there were a lot of empty retail premises in New York, and even on 5th Avenue there were gaps. However the retailers left did not appear to be struggling. They all had Memorial Day Promotions but no one was slashing margins and prices were realistic. Perhaps now that the competition has thinned out there is enough money going around to support good retailers
Finally I was intrigued by the fact that in New York shops exist in blocks. We visited the fashion district where 5 or 6 large retailers, effectively offering exactly the same ranges, exist side by side. As a wholesaler we are always been asked for exclusivity in a geographical area and are happy to offer it but New York runs totally counter to this. Who is right? I don’t know I’m a wholesaler not a business consultant!
see www.bestyears.co.uk for more detail
Tags: retail, retailing, teddy bear, wholesaler
