From The Washington Examiner:
On Thursday, Toys “R” Us announced that, after 70 years as the major toy chain, it was going defunct. Immediately there was a nostalgic backlash of adults humming the theme song, “I don’t wanna grow up, I’m a Toys ‘R’ Us kid…” to coincide with news reports of their closing.
Still, let’s be honest: This wasn’t Mom ‘n Pops book store being put under by Barnes & Noble, this was savvy, online retailers outdoing a smaller, specialized chain — peak free-market capitalism. The fact that it went under isn’t necessarily a cause for celebration, but nor is it an invitation to whine or feel sad. Would you rather live with Toys “R” Us and without Amazon?
Competition is ground zero for the marketplace. Those who stay in the ring, compete, and improve, go on to fight another match. Those who fail to observe their opponent, improve, and implement that knowledge will experience net loss and eventually shutdown. Chief Executive David Brandon blamed Target, Walmart, and Amazon for the store’s death. The New York Post reported: “the first self-inflicted wound came in 2000, when Toys ‘R’ Us, struggling without a viable e-commerce platform, inked a 10-year deal to become the exclusive toy seller on Amazon. At the time, shoppers going to toysrus.com would end up on Amazon.” To add insult to injury, Toys “R” Us could not seem to grasp the new era of online shopping and failed to lower the prices of its products to compete with other outlets.
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Adults (or kids) shouldn’t feel nostalgic that they can no longer be a “Toys ‘R’ Us kid,” they can just be happy they got their Nerf gun $10 cheaper at Walmart. As Milton Friedman said, “Underlying most arguments against the free market, is a lack of belief in freedom itself.”
Link to the rest at The Washington Examiner