Originally Posted by Pine Creek Railroad:
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A very tough business environment for our brick and mortar stores in this era.
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The internet is doing this to all kinds of businesses. When I first read the original post in this thread late yesterday, it brought back memories of a very successful custom audio, video and home automation company here in the Philadelphia area that closed very abruptly in June 2014 after being a well-established business in the area since 1955. For those of you living in the greater Southeastern PA area, you might recall HiFi House, based in Broomall, PA... with two other locations in Jenkintown, PA and Wilmington, DE. Some of my best audio gear came from that company over the decades.
News reports indicated that "the banks" forced HiFi House's closing, demanding that all remaining inventory be liquidated and operations to cease.
From the posting on the Allied Model Trains website home page, I'm drawing similar parallels to these two abrupt closings. At a certain point, this is one big numbers game. And when the investors aren't happy, that's the end of the line. I'm glad I got a chance to visit Allied Model Trains back in my Corporate America years (1980's, 1990's and early 2000's) when I traveled to California often. It was quite an impressive store, to say the least, back then.
As much as we love the convenience of internet shopping, it's undoubtedly been a highly disruptive business model -- creating a HUGE challenge for some traditional companies to adapt. And much has a lot to do with our behavior as buyers. Just think about it... how many of us would buy a TV or stereo component 10-15 years ago without feeling uneasy about the item arriving OK to your front doorstep? I know I MUCH preferred going to the local shop... SEEING what I was buying, and having the item delivered if I couldn't bring it home with me. I STILL do that today for large-screen TV's, but don't think twice about purchasing other items online and having them shipped to our home. Nearly all of the components in my latest home theatre "update" were purchased that way... the exception being the speakers and front-projection HDTV projector. I just couldn't see purchasing speakers and a projector sight unseen online.
I'm sure each of us our own threshold of comfort when it comes to making BIG purchases online vs. at a local brick-and-mortar store -- even in this hobby (if we're lucky enough to even have a local train store to visit). Here in Southeastern PA, we have a chunk of good train stores, and I like to support them whenever possible. But I also do my share of online shopping at popular toy train dealers, many of whom have recently become sponsors here.
I think over time, even those of us who are 50+ years old have gotten more comfortable making BIG purchases online. How many of you ordered your $2K Lionel Big Boy online and had it shipped? Probably a MUCH larger number than those who purchased locally. And that tells us something right there -- even without reading too much in between the lines.
David