Though I have never done business with them, looking at their About Us page has me assuming that their business model is one of an order broker just a bit more polished than say that of others many are familiar with. They posted pictures of warehouses across the country which are not theirs but the very same distributor's facilities that other hobby retailers use to supply their product needs. "Just In Time" in the supply sense is buzz for you don't keep inventory you order it when you need it.
Many in the hobby retail industry are feeling economic stress. Even some of those who have been around for decades are losing market share both on the wholesale and retail side. One which I am quite familiar with has seen continued steady growth and attracted more mfrs to be their distribution partner jumping to be the largest hobby retailer in the western hemisphere.
Currently we are traveling representing hobby mfrs, calling on LHS and attending local events to promote the hobby as well as those mfrs products we provide demos and staff training. Plus we also provide business and marketing consulting.
We see three types of owners...those that can't wait to close their doors, those that just exist and do little, nothing or the wrong things to help support themselves in their local markets and lastly those who are excited and successful. Its been eye opening and surprising at what you'll find.
As the number of LHS shrinks, the distance between them increases. In an article I wrote for FSM sister publication Model Retailer a while back the estimated number of LHS was +/-1500. That number has seen a decline from the latest numbers provided to us recently. This requires us to travel longer distances between calls...but its something that those we represent feel is necessary.
I've worked just about every aspect of this industry...clerk, manager, mfr, mfrs rep, author, consultant, retailer. Its been an interesting experience I'll say that!
There have been several players in this industry that came and departed. Some folks said that if X leaves the hobby will not be the same. Well once X left, some felt a little sorrow, but the world continued to spin and models found their way into those folk's stashes just the same only from someone else who knew what they were doing to remain viable as a business in this arena.