The Economics of Everyday Things 80. Going-Out-of-Business Sales
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Feb 10, 2025 Dive into the intriguing world of going-out-of-business sales! Explore the emotional and economic factors that drive consumer behavior. Discover the rise and fall of iconic retailers like Toys R Us amid fierce competition and overwhelming debt. Uncover the strategic pricing tactics used to create urgency during sales, while understanding the psychological influences at play. Hear heartwarming stories of community support saving local businesses from closure, revealing the powerful bonds between consumers and their favorite shops.
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Toys"R"Us's Downfall
- Toys"R"Us, a beloved retail chain, once controlled 25% of the toy market.
- Facing competition and debt, it filed for bankruptcy in 2017, resorting to a going-out-of-business sale.
The Role of Liquidators
- Going-out-of-business sales are complex events requiring specialized expertise.
- Liquidators like Bradley Snyder at Tiger Group manage these sales to maximize profits for struggling retailers.
Retail Apocalypse and Liquidation
- The "retail apocalypse" has led to numerous bankruptcies, forcing retailers to liquidate assets.
- Going-out-of-business sales aim to minimize losses by recovering as much value as possible from remaining inventory.