Monday, April 16, 2018

Starbucks: A Brew of America's Latent Racism, Comey vs. Trump: Choose Your Truth Teller


If I were arrested each time I scurried into a restaurant to use its bathroom without first or ever ordering any food or drink, my rap sheet would be longer than my arm. Both arms. Throw in both legs, as well. 

What many considered an oasis of progressive tolerance, Starbucks has now been transformed into a symbol of the bigotry, intolerance and double standard white America harbors toward people of color. All because an employee and his manager brought their prejudices to work and let them surface by calling the Philadelphia police to arrest two well-behaved black men, one of whom wanted to use the bathroom as they waited for a meeting with a (white) man who had not yet arrived. 

The Starbucks personnel claimed the black men were trespassing, though other patrons—white patrons—said asking to use the facilities without buying anything never provoked negative reactions, much less a call for police backup. 

It is the type of racial profiling, overt discrimination, that has alarmingly increased over the last decade and been at least tacitly condoned by the current occupant of the Oval Office. 

Starbucks has been shamed and apoplectic. Apologetic. It has reportedly reassigned the manager, though many have called for his dismissal. 

I wouldn’t fire the manager or the employee who called the police. Rather, as a condition of their continued employment by Starbucks, I would require each of them to perform 200 hours of community service in disadvantaged neighborhoods of Philadelphia. Perhaps that would educate them to the reality that people of all different colors are decent and deserve equal treatment.


Whom Do You Trust? Comey vs. Trump. A career straight shooter vs. a habitual stretcher of the truth (okay, a dyed-in-the-wool liar). 

Barring the existence of a tape recording of their conversations, the choice of truth teller very much lies with your prejudices. You can probably guess mine. 

What perplexes many observers is the stedfast support Trump receives from evangelicals of all denominations despite his less than pristine character, a character that former FBI director James B. Comey asserted Sunday night on ABC News makes Trump “morally unfit” to be president and that he doesn’t represent the values of America. 

Perhaps the linked article by David Von Drehle, a columnist for The Washington Post, will help you understand them better, why despite all his apparent flaws, Trump retains the allegiance of those in the nation’s heartland : https://wapo.st/2qfp0X0?tid=ss_mail&utm_term=.2ff8098e5218







Friday, April 6, 2018

Will Trump's End Justify His Means?


Maybe, just maybe, Donald Trump has a sense of history. After all, despite all his bravura claims about the efficiency and accomplishments of his presidency, he has yet to claim he has “made the trains run on time” (editor’s note—for those unfamiliar with the claim, google it. You’ll find it under Mussolini or Il Duce). 

Seriously, though, The Trumpster has added fuel to a long simmering debate: Does the end justify the means? 

Are his bluster, his arrogance, his indignities, his lying, his disdain for anyone not a Trump, just for show, to be ignored as long as he secures his objectives? Or, do all his character flaws impoverish the office of the president and the heritage of the United States as the beacon of the civilized world?

For Trump, for all of us, the bottom line, the “end,” is his presidency. When will it end? In January 2021? In January 2025? Or sometime before?  

America used to be known as a country where protagonists debated ideas. Trump has reduced politics to a contest of name calling powered by personal animosity and vengeance. 

Too many respected observers of our political landscape, including former secretary of state Madeleine Albright, have issued warnings about the Trump effect and the world’s and our possible slide into fascism for their misgivings to be ignored (your choice of sources: an Op-Ed piece by Albright in The New York Times: https://nyti.ms/2EpFn8F or or an interview with Terry Gross of NPR’s Fresh Air https://www.npr.org/2018/04/03/599120190/madeleine-albright-warns-dont-let-fascism-go-unnoticed-until-its-too-late).

To keep our heads above a fascist tide requires perspective plus a knowledge of history, science and basic truths. In the extraordinary teenage response to the Parkland, FL, high school shooting, what should we make of the use of the #NeverAgain hashtag? As repulsive as the killing of 17 students and faculty at Marjory Stoneman Douglas High School was, does it compare to the six million Jewish deaths in the Holocaust often commemorated by the phrase Never Again? (http://www.jpost.com/Diaspora/Never-Again-From-a-Holocaust-phrase-to-a-universal-phrase-544666)

Let’s hope the new Never Again movement has more success than the last. Since first promulgated, the world has witnessed genocides in Bosnia, Rwanda, Cambodia, Syria, Chile, Argentina, Myanmar. Given the frequency of school shootings, I am not confident of more success. 

Perhaps the students, even the Jewish students among them, did not know of the Never Again association with the Holocaust. Chalk it up, if so, to the sad condition of American education. We’re seeing that sorry state play out in the teacher strikes in West Virginia, Oklahoma and Kentucky. It is difficult to attract quality teachers for the poverty wages states pay.

When I started as a reporter in Connecticut back in 1972, my immediate supervisor resented teacher pay scales. He reasoned, as too many do even today, that teachers led cushy lives, that they had summers and holidays off, that their work day ended in the early afternoon, not realizing they spend evenings grading papers and preparing lesson plans. And that they often spend their own money to supplement the meager supplies they need to properly instruct their students.

Back then, teachers, like nurses, social workers, police and firemen, were thought to not need higher pay, that they received part of their remuneration in the positive feelings generated by their good works. Ha! Try paying your mortgage or your grocery bill with positive feelings!

Among the signs held up by a student at one of the Oklahoma teacher protests was one stating, “My textbooks are older than me.” Proper grammar would have taught him he should have written “than I,” but the sentiment was appropriate.

Our country’s history is full of less than noble chapters. Slavery. Near annihilation of Native Americans. Robber Barons. Jim Crow Laws. Segregation. Discriminatory laws against Irish, Italian, Jewish, Chinese immigration. Yes, we are a great country, but we must also keep in mind that dangerous precedents inhabited our past.

That’s why it is so important for our leaders to embrace the symbols of our diversity and greatness. Consider just two events of the past week. For the second straight year Trump chose not to attend a Passover seder at the White House. 

On the 50th anniversary of the assassination of the Rev. Martin Luther King Jr., Trump did not visit the monument to the slain civil rights leader a short distance from the White House. He merely tweeted a canned video praising King, but his unrehearsed comments of the last two years have exposed him as a bigot, a racist, a xenophobe and a sympathetic friend of budding, if not already, dictators around the world. 

“Instead of mobilizing international coalitions to take on world problems, he (Trump) touts the doctrine of ‘every nation for itself’ and has led America into isolated positions on trade, climate change and Middle East peace,” wrote Albright. “Instead of engaging in creative diplomacy, he has insulted United States neighbors and allies, walked away from key international agreements, mocked multilateral organizations and stripped the State Department of its resources and role. Instead of standing up for the values of a free society, Mr. Trump, with his oft-vented scorn for democracy’s building blocks, has strengthened the hands of dictators. No longer need they fear United States criticism regarding human rights or civil liberties. On the contrary, they can and do point to Mr. Trump’s own words to justify their repressive actions.”

Trump has used his bully pulpit, both in person and via Twitter, to harangue adversaries. His latest target is Amazon and its alleged sweetheart shipping deal with the U.S. Postal Service. Trump further claims Amazon is the reason many Main Streets across America have vacant storefronts (https://nyti.ms/2Gxtkfq).

Imagine that! Sen. Bernie Sanders agrees with Trump that Amazon is getting too big.

Amazon revenues last year totaled $178 billion. But what about Walmart? Its revenues reached $500 billion. Arguably, Walmart has done more to close down rival merchants than Amazon. To my knowledge Trump is not calling for a breakup of Walmart. Sanders, meanwhile, does criticize the Arkansas-based retailer for paying low wages to most of its associates.

Interestingly, while Trump bemoans the growing strength of Amazon he applauds the consolidation of local news outlets under the banner of the Sinclair Broadcast Group, a steadfast supporter of his views. If Sinclair receives approval to purchase Tribune Media it will have entry into seven out of 10 U.S. households. 

Trump also says Amazon should be required to collect state sales taxes to even the playing field with brick and mortar stores. He’s right, but Trump should be the last person to criticize anyone for not exceeding the requirements of the law. For its direct sales Amazon need only collect sales taxes in states where it has nexus. It is not required to collect sales taxes from sales made by its third party vendors. 

As are too many of our fellow citizens, Trump is under the impression that America owes its greatness to settlement by Western Europeans. He fails to recognize the contributions of Hispanics and Africans to our culture and economic growth. He scapegoats them in appeals to white nationalists and those who live in fear of imminent poverty or financial dislocation because America has shifted first from an agricultural economy to one dominated by manufacturing and now to a service-oriented platform.

Trump promises a return to greatness without ever spelling out the time period he wants to return to. His roadmap to wherever and whenever presumes America needs no partners other than on Trump’s terms. 

Will we be willing fellow travelers? Trump wants to get reelected. So do congressional Republican majorities who have mostly sublimated their constitutional obligations in favor of coattail election politics. 

It’s the people, however, who will determine—even in heavily gerrymandered districts—if democratic values will outweigh a strong man’s bombastic rule and attack on  cherished norms of society and politics. 




Tuesday, April 3, 2018

United Airlines Strikes Again: The Silent Treatment


Did you have an enjoyable, uneventful snow day Monday? I didn’t, thanks to another United Airlines foulup due to poor communication. 

My two Omaha-based grandchildren, CJ and Leo, along with their parents Ellie and Donny, were scheduled to fly home nonstop from Newark at 3 pm. The surprising snow storm dumped seven inches on our driveway. Even more surprising, despite being heavy wet snow, it did not clog the chute of my snowblower. 

Prompted by the storm, meanwhile, United decided around noon to delay takeoff until 4:40 as incoming planes had been unable to land. So, instead of leaving White Plains shortly after noon for the one hour ride to Newark, we embarked at 1:30.

We encountered no traffic, not even as we crossed the George Washington Bridge. But, as we motored down the New Jersey Turnpike near MetLife Stadium, Donny received an alert from a travel app on his iPhone that the plane would be taking off as scheduled at 3!

He quickly checked United’s web site. Phew. United showed a 4:40 departure time. Already traveling in excess of the 55 mph speed limit, there was no reason to put more petal to the medal.

A few minutes later, however, United reversed course. Its web site reverted to the original 3 pm departure. Donny never received an email or text notice. He found out only because he was obsessive and checked again on his own.

With two children, CJ 3, Leo 7 months, plus a trunkload of luggage to check, it seemed unlikely they could pass through security and get to the gate before it closed.

When we arrived at the terminal Donny jumped out to seek a customer service agent to explain their dilemma and expedite the check-in process. Helpful though she was, it could not be done in time to make the flight.

She could not explain why United had changed the departure back to the original time.

She could, however, rebook their flight out. Instead of the non stop that would have arrived in Omaha at 6:04 pm local time, where Donny’s mother would pick them up, she offered two alternatives: The earliest non stop was Tuesday morning at 6, meaning we would leave White Plains in darkness at 3:30. But when we would get to Newark, though their tickets would say the flight originated from terminal C, there could well be a gate change to terminal A, she said. It would be a decision United would not make until the morning, most probably after they checked in.

Or, they could fly Monday evening around 5 pm to Houston, arrive around 8 then wait two hours for a flight to Omaha that would get in around midnight. But—always that “but”—she cautioned the flight from Houston probably would be delayed for two hours. They wouldn’t land in Omaha until 2 am not sure if Donny’s mother would be able to pick them up.

Truly a Hobson’s choice: travel with two kids for another 12 hours, eating airport food and hoping their children would sleep at least part of the way, maybe in airport terminals, or overnight back in White Plains, get up at 3 am and return to the airport shortly after 4.

They chose another night at grandma and grandpa’s house. Which meant I was waking up at 2:30 am. Uber was not an option, not while I am retired and still physically and mentally fit to drive.

To and from the airport was uneventful. Less than two hours. Fully clothed I crawled back into bed at 5:30 am for four hours of much needed sleep. 

Friday, March 30, 2018

President Spanky and His Gang


One of the more amusing tidbits to emerge from the 60 Minutes Stormy Daniels interview is a new nickname for The Donald allegedly used by Washington politicos. Reflecting off Stormy’s swatting him on his derriere with a rolled up magazine bearing his face on the cover during their tryst at the Beverly Hilton bungalow that apparently was his preferred pied-à-terre-les-liaisons-dangereusese, the cheek-in-chief is being called President Spanky

It seems overblown to label Stormy’s sexcapade with Spanky an actual affair as she claims they did it only once during their months-long relationship. It was more like a frisbee fling that so far has not officially landed. 

The kerfuffle over Stormy’ nondisclosure agreement brought to light Trump’s alleged demand that administration officials sign NDAs. If adhered to, one wonders how detailed a view the public will get of Trump world. One can only imagine the stories ex-secretary of state Rex Tillerson or ex-national security advisor General H.R. McMaster could tell. Or ex-press secretary Sean Spicer. But, according to The Washington Post, the NDAs include a penalty of $10 million if classified information is ever released without authorization. The fines would be paid to the government, not Trump (https://www.washingtonpost.com/amphtml/opinions/trumps-nondisclosure-agreements-came-with-him-to-the-white-house/2018/03/18/226f4522-29ee-11e8-b79d-f3d931db7f68_story.html). 

If anyone would dare test the NDA it might well be David J. Shulkin. Fired within hours of being told by White House Chief of Staff John Kelly that his job as head of the Veterans Administration was safe, Shulkin said he was let go because he did not support Trump’s plan to privatize the VA (https://nyti.ms/2uuSXaZ). 

“They saw me as an obstacle to privatization who had to be removed. That is because I am convinced that privatization is a political issue aimed at rewarding select people and companies with profits, even if it undermines care for veterans,” he wrote in The New York Times. 

“I can assure you that I will continue to speak out against those who seek to harm the V.A. by putting their personal agendas in front of the well-being of our veterans.”

Let’s hope he follows through and that others place loyalty to country ahead of NDA’s to an egotistic leader. 

Turn of Phrase: To be a television commentator or political show panel guest it seems one has to be able to put Trump’s actions in comic terms. I was particularly taken by a remark Republican strategist Ana Navarro made on a recent Real Time with Bill Maher. 

“The only consistent thing about Donald Trump is his inconsistency. We saw it with guns. We saw him doing it with barring gays from the military. The guy, you know, can hold more positions than the Kama Sutra.”


Safety First?: Mississippi governor Phil Bryant was quoted as saying he wants his state to be the safest for the unborn child. That’s why he is trying to prevent any abortion from happening in Mississippi. He signed a law banning abortions after 15 weeks of pregnancy. The law has been stayed in court pending a constitutional challenge (https://nyti.ms/2GL6X39). 

But what Bryant doesn’t talk about is his state’s position on health care for expectant mothers and their babies.

A new report by the Center for Disease Control and Prevention “showed that, from 2013 through 2015, the infant mortality rate in the U.S. ranged from 9.08 deaths per 1,000 infants born alive in Mississippi -- which had the highest rate -- to 4.28 deaths per 1,000 live births in Massachusetts, which had the lowest” (https://www.cnn.com/2018/01/04/health/infant-mortality-by-state-study/index.html).



Passover begins Friday night: Time of liberation. A template story for Africans bound into slavery in the New World. Some 40% of all slaves brought to North America landed in Charleston, SC. 

A new International African American Museum is planned for the city. But as The Times pointed out, South Carolina still has a ways to go to balance its dedication to the Confederacy and slavery with the inalienable rights of Black residents. “The state’s most recent proposal for social studies standards in public schools doesn’t mention the Rev. Dr. Martin Luther King Jr., or Rosa Parks,” The Times noted (https://nyti.ms/2uvYcar).


Harbinger of Spring: Passover also is known as a celebration of spring. I have my own signal spring is upon us. My harbinger is not a crocus that keeps trying to reveal itself through the lingering cover of snow across our yard. Or the robins bobbing along each morning. 

No, my signal reveals itself in the middle of the night when I turn on the bathroom light, freezing any silverfish that, resurrected from a winter’s sleep, has chosen that moment to emerge from a crack where the baseboard meets the tiled floor.  

Friday, March 23, 2018

Timing of Trump Presidency in the Balance


In life, it is said, timing is everything.

The future of Donald Trump’s presidency, it may be said, hinges on timing. If one believes the dumpster-in-chief will fire special counsel Robert Mueller, the question becomes not why, but rather, when.

If he wields the twitter ax before the November elections he would galvanize an already white hot opposition, perhaps fueling enough rage to flip the House and Senate into Democratic control. Impeachment proceedings would surely follow in the new year when the next Congress convenes.

He may, therefore, wait to dump Mueller, along with Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein until after the elections. But that route risks providing Mueller with more than seven full months to further his investigation of Russia’s influence and interference in the 2016 elections and the Trump family’s ties to Russia. 

Does Trump want, in his mind, to be a political piñata seemingly forever? According to CNN, Mueller has indicated he has four main topics he would like Trump to address through questioning: his “role in crafting a statement aboard Air Force One that miscast Donald Trump Jr.’s campaign June 2016 meeting with Russians in Trump Tower, the circumstances surrounding that Trump Tower meeting as well as the firings of FBI Director James Comey and national security advisor Michael Flynn” (https://www.cnn.com/2018/03/21/politics/mueller-four-main-areas-questions-trump/index.html).

Though he has repeatedly said he would welcome talking with Mueller, Trump’s propensity to fabricate and dissemble could place him in jeopardy of perjury. It is hard to imagine any intelligent lawyer permitting Trump to appear under oath before Mueller. Of course, that presumes Trump would listen to any lawyer. He believes he always knows best.

During his campaign Trump boasted he would hire the best people (considering how many firings, resignations and abuses of taxpayer money his appointments have racked up, it is startling to think anyone has any confidence in Trump’s capacity to select competent, honest people to serve in his administration). 

Trump lambasted George W. Bush for his foreign policies, particularly as they affected the war in Iraq. So one wonders how he could hire John Bolton as his new national security advisor. Bolton was a prime contributor to Bush’s foreign policy team (https://nyti.ms/2pz9SnY).

Bolton is as hawkish as they come, giving credence to speculation that Trump is surrounding himself with voices that prefer to counsel combat versus conflict resolution, be it with Iran, North Korea or any other trouble spot. 

Timing, again, comes into play. Trump wanted a tougher team behind him, with Bolton and secretary of state nominee Michael Pompeo, rather than General H.R. McMaster and Rex Tillerson, as he prepares to meet with North Korea leader Kim Jong-Un and reaches a decision on staying in or abrogating the Iran nuclear deal. 

In the context of what is good for the country or what is good for Trump, he might favor hostilities as history has shown that at least at the beginning of combat the public rallies around a president. 

In the end, however, a sufficient number of voters will come to their senses. As long as the Democrats do not choose an unelectable alternative, Trump’s tenure in office is just a matter of time ticking off until January 2020, or sooner. 

Thursday, March 22, 2018

Three Deaths in an Extended Family


The official cause of death was reported as respiratory failure, but to me anything but a broken heart would be a mischaracterization.

Charles Lazarus, the guiding light of Toys “R” Us for 46 years, died Thursday, one week to the day after the company he founded in 1948 filed bankruptcy liquidation papers. He was 94. 

In a corporate obituary of Toys “R” Us I posted just a week ago, I wrote, “I cannot imagine what must now be gripping his emotions” (http://nosocksneededanymore.blogspot.com/2018/03/from-proudest-moment-to-saddest-saga-of.html).

It somehow seems fitting that Lazarus did not outlast his creation. Even if some parts of Toys “R” Us may be resuscitated, as some toy suppliers are trying to cobble together a successor company, the chain will never be the same as when Lazarus commanded the toy industry. 

I had the good fortune of knowing some of the titans of the retail industry during the last half century. Lazarus would qualify for Mount Rushmore status. He invented the category killer discount specialty store concept copied in numerous merchandise categories. 

Retailers with his merchandising, marketing and operational skills, linked by strategic perception and unmatched passion, are rare birds. He will be missed by all who knew him and by countless children, some still young, some now grown up, some not yet conceived.  


Back to the Shtetl: One never knows where inspiration for a posting will emerge, where a seemingly distant reference might intersect with some part of your or your family’s past.

The New York Times ran an obituary of Rabbi Mordechai Hager in Saturday’s edition (https://nyti.ms/2Dz4SUq). The 95-year-old rabbi was the leader of the American branch of the Viznitz Hasidim, a religious sect that began in the Carpathian foothills of what is now western Ukraine. My father’s shtetl town of Ottynia was in that region, so I was naturally interested in details of Rabbi Hager’s life. 

As I read the obituary I was struck by the following: “Mordechai Hager was born on July 20, 1922, in Oradea, Romania, known among Yiddish speakers as Grosswardein. His father, Chaim Meir Hager, was the fourth grand rabbi of Vyzhnytsia (Viznitz in Yiddish), the village in the Carpathian foothills in what is today western Ukraine; the village had been the seat of this Hasidic dynasty since its beginnings in the mid-19th century.”

The key phrase, “His father, Chaim Meir Hager,” made me race to my folder on Ottynia. In a booklet published in 2000 by Philip Spiegel, a descendant of Ottynia emigres, there are numerous references to “Rabbi Chaim Hager and the Chassidim of Ottynia.” (Observant readers will notice the cited names are not totally identical: Chaim Meir Hager vs. Chaim Hager, but the family of rabbis is definitely the same.)

“Rabbi Chaim Hager was born in Wishnitz in 1864. He was the sixth generation of the Wishnitz dynasty of rabbis who descended from Rabbi Kopel Chassid, a student of the Baal Shem Tov, the founder of the Chassidism in the early 18th century (interestingly, my father’s first name was Kopel). At age 13, Chaim Hager was ordained as a rabbi after studying with his grandfather. … 

“Toward the end of the 19th century he settled in Ottynia and thousands of Chassidim came there to study with him.”

Ottynia changed hands several times during World War I. Seeking safety, Rabbi Hager moved to Vienna during the war. “When the war ended he found much of Ottynia and the synagogues in ruins so he moved to Stanislawow,” now called Ivano-Frankivska, a larger city to the northwest. He died in 1931 in Krakow. He was buried in Stanislawow. 

Many Viznitz Hasidim emigrated to Israel after World War II. They settled in Bnei Brak, outside Tel Aviv. Yeshivat Ottynia, in Bnei Brak, has been run by a grandson of Rabbi Chaim Hager. 

I’ve visited Israel numerous times, never stopping in Bnei Brak. Now that I have a connection, I cannot say it will make a difference the next time I am in Israel.


Leading Lady: I got to know Charles Lazarus and other retail luminaries because I worked for Lebhar-Friedman, publisher of Chain Store Age. L-F is a family run company, founded in 1925 by Arnold Friedman, Godfrey Lebhar and John Stern (I have no idea why his name is not part of the company). 

Since 1981 after the death of his father, Roger Friedman has led the company. Once, twice or maybe three times a year, I would see his wife Pat at the office, a company function or at one of our conferences. She usually wore something red. She always smiled and had a graceful gait, walking with head held high. 

The last time I saw Pat Friedman, about five years ago, Gilda and I were eating lunch with Ellie in the basement cafeteria of the Metropolitan Museum of Art. Ellie worked at The Met. Pat was there because she was a docent. 

Pat died last Thursday, March 15. Here’s a portion of the death notice printed in The Times:

“Patricia Mosle Friedman of New York, NY, and Pecos, NM, passed away on March 15th, 2018, after an intense battle with cancer. She died peacefully, in her sleep, surrounded by her family’s love. Born in Litchfield, CT, to A. Henry Mosle and Jane Magor Mosle, she graduated Magna Cum Laude from Columbia University where she was elected to Phi Beta Kappa, and awarded a Woodrow Wilson Fellowship. She later received her M.A. from the Institute of Fine Arts, and spent several years as an adjunct professor at Hunter College where she taught Impressionism and Post Impressionism. She earned a Certificate of Achievement from The New York School of Interior Design and freelanced as an interior designer with Stroheim and Romann. 

“Passionate about the arts as a whole, Pat excelled as a student and teacher of Middle Eastern Dance, and performed several times at Lincoln Centre under her stage name, Patrima. For the past 30 years, Pat truly loved being a Docent at The Metropolitan Museum, serving as Chair of the Collection Tour Program from 2008-2010. She served as a guide in the High School Program, and an adult tour guide in Highlights, Impressionism, Post Impressionism, and Modern & Contemporary. She was perpetually inspired by the works of art that she covered, and rejoiced in the constant sense of ongoing discovery and learning. 

“She was a Colonial Dame, a Sustainer of The Junior League of New York where she was named Volunteer of The Year, a Founding Member of the Board of the National Dance Institute in Santa Fe, New Mexico, and sat for many years on the Board of The National Council on Alcoholism and Drug Dependance. 

“Pat is survived by her husband of 55 years, Roger, their daughter, Amanda, son, Randall, daughter-in-law, Tomomi, and twin granddaughters, Sasha and Myla.”

Friday, March 16, 2018

From Proudest Moment to Saddest, the Saga of Toys "R" Us Founder Charles Lazarus


With the liquidation bankruptcy filing of Toys “R” Us, the era of the category killer store may be said to be over. Toys “R” Us was the original category killer chain that overwhelmed small specialty and large general merchandise stores by offering a supermarket-style presentation of wide and deep assortments of sharply priced category specific merchandise. 

To be sure, a few category killers remain—Best Buy, Dick’s Sporting Goods, Bed Bath & Beyond, and even the struggling Barnes & Noble, to name several. But the graveyard list of category killers is much larger. An incomplete list would include Child World, Lionel Leisure, KB Toys, Circuit City, Crazy Eddie, Sports Authority, Oshman’s Sporting Goods, Linens ’n Things.

When Toys “R” Us began in 1948, if you wanted toys, or an appliance or housewares item—virtually anything—you would go downtown to a department store. There were no suburban department stores back then. There were no suburban shopping centers. 

Charles Lazarus used $4,000 to transform his father’s Washington, DC, bicycle shop into a juvenile furniture store. After customers kept asking for toys, Lazarus quickly evolved his merchandise mix to focus on toys. 

He believed staunchly in regimental uniformity. All business decisions–which products to carry, merchandising and store layout–emanated from headquarters. “I should be able to close my eyes and walk 130 feet and put my hand down and touch the very same stack of items in each store. If not, there’s something wrong,” he used to say. 

Lazarus was an early believer in the power of point of sale data. He partnered with suppliers, accepting early inventory deliveries and sharing sales data in return for discounts and assurances that Toys “R” Us would be kept in stock on the most wanted toys. The chain’s wide and deep inventory position became a strategic advantage when desperate parents and grandparents scavenged for the most wanted present during the holiday season. In stock leadership, not price, cemented the company’s position as the go-to retailer for toys. 

This advantage started to dissipate in the late 1980s as Walmart and Target refined their POS data systems. They concentrated on the hottest toys, selling them at discounted prices. They had more stores than Toys “R” Us. Shoppers visited them more often. They siphoned off sales in buckets, not drips and drabs. 

If you needed a specific toy, the place to go no longer was Toys “R” Us. In the age of the Internet, you searched on line, Amazon most likely.

With the advent of electronic games, computers and hand-held devices, traditional toys began losing their cache among children. Toys “R” Us added video games to its assortment, but one didn’t need to visit a store to upload apps to a hand-held device.

The real dagger to the heart of Toys “R” Us and other retailers, however, has been the greedy tentacles of private equity fund managers. They swooped in to ostensibly rescue retailers, offering cash secured against a retailer’s real estate. Some merchants had lagged because they could not compete against more streamlined, better financed competitors. Some were unable to cope with changing market conditions. Some just had inadequate management. It mattered not to the equity funds. They reaped their profits upfront from the leveraged buyout transaction, from interest payments on the debt it provided and, hopefully, from taking a retailer public if its profitability improved. 

Ever since Charles Lazarus retired from his creation in 1994, Toys “R” Us has lacked an energetic, bold merchant at the helm. Profits lagged. The equity funds offered money. But at a highly leveraged  price. Executives with no proprietary interest in a company, other than to maximize their personal returns, usually succumb to the siren song of a deep-pocketed equity fund. Bain Capital and Kohlberg Kravis Roberts, along with Vornado Realty Trust, loaded Toys “R” Us with $5 billion in debt in a 2005 leveraged buyout. 

The downward sales spiral kept Toys “R” Us from paying off the debt and, ominously, from upgrading its stores and systems. All that’s left now is to sell off its real estate. 

Charles Lazarus is now 94. The last time I saw him was about 15 years ago as I was leaving work. He was window shopping a store located on the ground floor level of the Park Avenue office building housing Chain Store Age. We exchanged pleasantries but even then, a decade removed from active Toys “R” Us management, he resisted talking about the company he founded. 

He always was a reluctant interview (see http://nosocksneededanymore.blogspot.com/2017/09/toys-r-us-bankruptcy-brings-back.html). I cannot imagine what must now be gripping his emotions. 

His proudest moment, he used to say, was paying off the creditor debt Toys “R” Us assumed when its then-parent company, Interstate Stores, dragged it into Chapter 11 bankruptcy reorganization in 1974. Other Chapter 11 filings have occurred, none under his watch. 

On Thursday, management filed for Chapter 7 liquidation. The same market forces that will silence Lazarus’ once ubiquitous airwaves jingle—“I don’t wanna grow up, I’m a Toys “R” Us kid …,”—are sure to wreak havoc among remaining category killer stores. For some, if not all, it is just a matter of time before they share a similar fate.