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Strategies & Market Trends : The New Economy and its Winners

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To: Lizzie Tudor who wrote (10851)	3/15/2002 8:48:10 PM
From: techanalyst1	Read Replies (1) of 57684

Toys R Us is a turnaround. I don't really know if they tried to come up with their own site under this ceo or not. If you go to their site it automatically goes to the Amazon site. I've bought toys from them on line but I prefer to buy at the store due to the shipping costs and because I have a store close to me anyway. Only reason I buy toys online is for someone that I have to ship to anyway. I really doubt that Amazon has to even partner with a toy company. Seems to me that Amazon can partner with a general retailer (walmart, target) to sell toys and baby products (how hard is it to sell toys online? It's just a matter of having all the products in stock. However, Toys R Us carries more products as well as proprietary products than Walmart or Target). If amazon were to go with someone else, don't you think they'd ask for concessions if Toy was losing money (which they are)? And if they had to give a better deal to someone else, then what's the point to switching vendors? There aren't any other toy retailers left that could take Toys R Us's place, so they'd have to go with a general retailer. The telecoms are renegotiating their deals. I know my sweetie's company is having to renegotiate contracts with their customers (the likes of Sony which is not exactly in poor shape themselves... they just know they can so they are), even homebuilders are offering incentives to close deals. It's a dog eat dog world out there. Why should it be surprising to hear that amazon's partners are wanting to renegotiate? If Toys R Us determined that selling on line at their own site would lose more money than thru amazon, I doubt they'd even attempt it. And if they determine that selling through amazon is going to be eternally a losing operation, I think they'll try to end the whole alliance. End of story. This ceo is out to make money, not gain market share for the purpose of gaining share. He's made that crystal clear. Whether he can renegotiate the deal or get out of it, is open to question. TA

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