>>> TOY GIANT TOYS R US JUST ANNOUNCED THE CHAIN WILL BE
CLOSING ALL 735 STORES. IT'S A TREND THAT WE HAVE SEEN
WITH OTHER MAJOR RETAILERS AS ONLINE SHOPPING HAS PICKED UP.
TOYS R US HAS A STORE ON BOSTON ROAD IN SPRINGFIELD.
THE 70-YEAR-OLD COMPANY FILED FOR BANKRUPTCY LAST SEPTEMBER
AND ANNOUNCED IT WAS STRUGGLING WITH $5 BILLION IN DEBT.
CAROLEE MCGRATH SAT DOWN WITH RICK SULLIVAN, THE PRESIDENT OF
THE ECONOMIC DEVELOPMENT COUNCIL OF WESTERN MASSACHUSETTS, TO
LEARN MORE. >> I THINK IT IS PROBABLY A SIGN
OF THE TIMES. I DO THINK TOYS R US IS A LITTLE
BIT UNIQUE IN THE SENSE THAT I DON'T THINK IT'S JUST BECAUSE OF
THE AMAZON, WHICH I THINK PEOPLE GO TO IMMEDIATELY.
CERTAINLY THAT'S A FACTOR. BUT THEY'VE LOST MARKET SHARE TO
WAL-MART AND TARGET AS WELL. AND REALLY IN THE CASE OF TOYS R
US HAVE TAKEN ON A LOT OF DEBT AND WERE SERVICING THAT.
SO THAT PREVENTED THEM FROM INVESTING IN STORES OR
EMPLOYEES, SO THEY WEREN'T COMPETITIVE WITH THE EMPLOYEES
SALARIES AND NAY WERE LOSING EMPLOYEES SOPT THE SHOPPING
EXPERIENCE REALLY CONTINUED TO SPIRAL DOWN AND THEY LOST MARKET
SHARE AND ULTIMATELY HAD TO CLOSE.
BUT CERTAINLY THE GROWTH IN ONLINE AND THE GROWTH OF AMAZON
IN PARTICULAR IS CERTAINLY CHARGING THE LANDSCAPE OF
RETAIL, PARTICULARLY WITH THE BIG BOX.
>> IT'S JUST A SIGN OF THE THE TIMES.
FOR SOMEBODY LIKE ME, I LIKE TO WALK INTO A STORE AND BUY
THINGS. BUT YOU LOOK AT ALL THE YOUNG
PEOPLE AND THEY'RE CONSTANTLY ORDERING STUFF, OR HEY MOM, CAN
YOU ORDER THIS OR THAT. BUT HOW DOES THIS CHANGE THINGS
AS FAR AS, WE SAW MACY'S LEAVE THE AREA AT EAST FIEND AND EN
FIELD. J. C. PENNEY'S OUT OF EAST FIELD
MALL. SO SEEMS LIKE ALL OF THESE BIG STORES THAT A LOT OF
US WERE USED OH TO GOING TO ARE DISAPPEARING.
IS THAT JUST THE LANDSCAPE OF THIS BUSINESS?
>> IT IS A LOT OF THE LANDSCAPE. THE COMPANIES CLOSE THEIR
NONPERFORMING STORES MUCH QUICKER.
THEY DON'T CARRY THE STORES ANY MORE.
CERTAINLY THE ADVENT OF ONLINE OF THEIR OWN ONLINE AS WELL AS
COMPETITORS LIKE AMAZON ARE THREATS TO. THAT WHICH IS WHY
WE'RE STARTING TO SEE THE TONERS OF THE MALLS LOOK TO OTHER
MODELS THAT AREN'T JUST ANCHORED WITH THE BIG BOXES LIKE THEY
TRADITIONALLY WERE. AND LOOK TO DO THINGS LIKE EVEN
CREATIVE HOUSING IN THE MALL, AND THEN HAVE SMALLER
RESTAURANTS AND SMALLER BOUTIQUE SHOPS, AND MAYBE A PHARMACY OR
TWO RIGHT THERE SO THAT YOU HAVE ALMOST A COMMUNITY THERE AND
REALLY HAVE MUCH MORE OF A LIFESTYLE CENTER, WHICH ARE
STARTING TO BECOME POPULAR ACROSS THE COUNTRY.
>> I THINK IT'S A LITTLE BIT OF AN ADJUSTMENT TOO FOR THE
CUSTOMERS WHO ARE THINKING OF MALLS NOT AS CONDOS OR SOMETHING
LIKE YOU'RE DESCRIBING, BUT AS THE BIGGER TYPE BOX STORES.
AND A LOT MALLS ARE GOING TOWARDS MORE ENTERTAINMENT, WITH
MOVIE THEATERS, HOLYOKE HAS BILLY BEE'S WHICH IS WILD WITH
LITTLE KIDS ALL THE TIME. SO THAT'S ANOTHER WAY THAT
THEY'RE TRYING TO MEET THE MARKET NEEDS.
>> YES, IT IS. I THINK THAT'S WHY THEY TEND TO
USE THE TERM LIFESTYLE, WHEN THEY REALLY WANT TO YOU GO THERE
FOR THE WHOLE FULL EXPERIENCE. SO IT'S THE RESTAURANTS AND THE
ENTERTAINMENT AS WELL AS THE SHOPPING AND POTENTIALLY
HOUSING. SO IT'S ALL KIND OF THERE.
BUT IT'S ALSO INTERESTING TO SEE HOW IT HAS EVOLVED, BECAUSE A
GENERATION AGO THE COMPLAINT WAS THAT ALL THE STORES WERE BEING
MOVED OUT OF THE DOWNTOWNS AND INTO THE MALLS, BECAUSE THAT'S
WHERE PEOPLE COULD GO AND DO IT CONVENIENTLY.
AND GET A GREAT SHOPPING EXPERIENCE AND DO IT ALL IN ONE
PLACE. AND NOW A LOT OF THAT
CONVENIENCE IS ONLINE. SO NOW YOU SEE THE MALLS ARE
COMPLAINING OR HAVING TO DEAL WITH THE REALITY OF LOSING THOSE
LARGER TENANTS. WHERE THE LOCAL DOWNTOWNS HAVE
STARTED TO EVOLVE INTO SMALLER RESTAURANTS, BOUTIQUE
RESTAURANTS AND HOUSING BECOMES ANOTHER, AND SMALLER BUSINESSES,
TO CREATE THAT FOOT TRAFFIC THAT CAN DRIVE THE HEALTH OF THE
DOWNTOWN. YOU'VE SEEN THAT DONE
SUCCESSFULLY IN THE NORTHAMPTONS AND AMHERST YOU'RE STARTING TO
SEE GREENFIELD, THEIR DOWNTOWN, THERE'S DEFINITELY A BUZZ IN THE
DOWNTOWN IN GREENFIELD. BUT CERTAINLY PLACES LIKE
SPRINGFIELD WHERE YOU HAVE THE BID AND THE TDI INITIATIVES IN
THE DOWNTOWN, GROWING SMALLER BUSINESS AND SMALLER
RESTAURANTS, AND THAT'S HAPPENING EVERYWHERE.
WHETHER IT'S WESTFIELD, AGAWAM, OR HOUSING PROJECTS IN CHICOPEE,
WHICH AGAIN IS CREATING CRITICAL MASS IN THE DOWNTOWN FOR THE
REBIRTH OF THE DOWNTOWN WITH A VERY DIFFERENT MODEL.
IT WILL NOT BE ANCHORED WITH BIG STORES.
BUT SUCCESSFUL NONETHELESS AND WILL BECOME PART OF THE
COMMUNITY. >> SO YOU HAVE TO EMBRACE THE
CHANGE A LITTLE ON THIS. HOW DOES TOYS R US, THEIR
SITUATION AFFECT LEGO OR HASBRO? HOW DOES IT AFFECT THAT?
>> WELL, WHEN EVER A CUSTOMER GOES, YOU HAVE TO MAKE
ADJUSTMENTS. I DON'T THINK IT WILL IMPACT
LONG-TERM, IN FACT YOU'VE SEEN COMPANIES ADD LINES, SO THERE'S
BEEN GROWTH THERE. EARLIER YOU STARTED TO SEE THE
WAL-MARTS AND TARGETS AS WELL AS AMAZON STARTING TO SELL.
SO THEY'RE SOLD A DIFFERENT WAY AND IT JUST SHIFTS.
BUT THOSE LINES CONTINUE TO BE POPULAR AND WE'VE ACTUALLY SEEN
GROWTH THERE, PARTICULARLY IN THE MANUFACTURING SIDE IN
WESTERN MASSACHUSETTS. >> SO THERE IS A LOT GOING ON IN
WESTERN MASSACHUSETTS, WE CERTAINLY HAVE MGM, WE HAVE MASS
MUTUAL ADDING JOBS. TELL US ABOUT SOME OF THE FLIP
SIDE OF ALL THIS. >> WELL, THIS IS A VERY EXCITING
TIME TO BE IN WESTERN MASSACHUSETTS.
ALL THE PROJECTS THAT YOU JUST NAMED, BUT THE E. D. C. DID A
STUDY ABOUT TWO YEARS AGO NOW AND WE LOOKED AT ALL THE
COMMUNITIES, MOSTLY IN THE THREE COUNTY AREA, SO HAMPDEN,
HAMPSHIRE AND FRANKLIN COUNTIES, AND WE SPECIFICALLY FOUND
$5.2 BILLION OF PRIVATE AND SOME PUBLIC INVESTMENTS THAT WAS
HAPPENING IN THE REGION, THAT'S A BIG NUMBER FOR US.
AND THAT'S REAL ECONOMIC DEVELOPMENT, THAT'S NOT PLANS.
THIS IS HAPPENING ON THE GROUND IN REALITY, HAPPENING.
SO IT IS REALLY, THERE'S ECONOMIC GROWTH, SOME OF IT IS
IN MANUFACTURING. SOME OF IT IS IN THE SMALLER
RETAIL. BUT IT'S CERTAINLY IN THE
SERVICE INDUSTRY, IT'S IN EDS IN MEDS, OUR LARGER EMPLOYERS, THE
BAY STATES AND THE MERCY'S REALLY DRIVE A LOT OF THE
ECONOMY IN WESTERN MASSACHUSETTS.
AND WORRY ANCHORED WITH OUR SCHOOLS OF HIGHER ED, ALL THE
COLLEGES AND UNIVERSITIES, WHAT THEY'RE DOING AROUND INNOVATION
WHAT THEY DO TO DEVELOP THE WORK FORCE, WHICH IS THE BIGGEST
ISSUE THAT WE HAVE AND THE BIGGEST BARRIER TO GROWTH, IS
WORK FORCE, SO THESE ARE THE PROFESSIONALS THAT DO A
PHENOMENAL JOB OF EDUCATING AND PRODUCING THE WORK FORCE.
AND YOU'RE STARTING TO SEE THEM WORK VERY CLOSELY WITH
BUSINESSES IN THE PRIVATE SECTOR IN TERMS OF HOPEFULLY GETTING
THAT TALENT TO STAY HERE LOCALLY.
THIS IS AN EXCITING TIME.