Financial Times: Retailers Fragile and Exposed in a Cold Climate

Rise in insolvencies and restructuring a sign of deteriorating outlook, say analysts

By Mark Vandevelde

We’ve found that a lot of parents hate going to the toy store because it’s a place where arguments will happen, they lose control of their budget and their children.
— Michele Chang-McGrath

Michele Chang-McGrath talked to the FT's retail editor, Mark Vandevelde, about the recent woes of retailers:

“The likes of Maplin and Toys R Us were stuck [thinking that] the role they were playing for consumers was being there as a warehouse giving choice and convenience,” says Michele Chang-McGrath, a partner at ReD Associates, which studies consumers’ in-store behaviour. 

Tracking down niche toys is now a function better performed by Amazon than speciality big-box stores, Ms Chang-McGrath says. 

“We’ve found that a lot of parents hate going to the toy store because it’s a place where arguments will happen, they lose control of their budget and their children,” she says. “Online, you don’t have to face those battles.”

To read the full article go to FT.com


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