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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Saturation patrols planned this weekend Wind shifts should rid Rogue Valley of smoke 10 things to know for Friday Emergency Services City officials take Ice Bucket Challenge Crime, Courts and Emergency Services Saturation patrols planned this weekend Emergency Services Medford man arrested on suspicion of dealing meth Medford man arrested after abandoning stolen vehicle on I-5 Wounded Klamath deputy has ties to Rogue Valley Politics and Elections Gold Hill mayor faces challenger; other races have one candidate each Medford proposes new rules for pawn shops to help nab thieves Lack of incumbents, pot issue draws 10 for Medford council races Council members in Gold Hill dodge voter recall Bill Pullman campaigns for Oregon GMO labeling law Education Medford charter school opens with many changes, including its name Superintendent welcomes staff to a new school year Safe haven: Art program provides a place for youth to express themselves Sacred Heart School gets new principal Medford School District considers gifted land for new school Environment Judge won't block release of water Ashland marchers won't give up on climate change message OR-7 could be recollared next month Deadly deer virus may be spreading Talent earns Bee City USA designation State news Nation - World Obituaries Ted E. 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NW Raw Kelly's Crepes Basil & Berries India Palace Tempo Videos Classifieds Jobs Autos Real Estate FEATURED » Obituaries TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW Saturation patrols planned this weekend ... Wind shifts should rid Rogue Valley of smoke ... 10 things to know for Friday ... Saturation patrols planned this weekend ... Wind shifts should rid Rogue Valley of smoke ... 10 things to know for Friday ... RETAIL Iconic Jacksonville toy store forced to reinvent itself Market forces lead Scheffel's Toys to drop collectible lines that have been part of its identity for decades. By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 20, 2014 @ 5:51 pm Updated Aug 21, 2014 at 6:48 AM By Greg Stiles Mail Tribune Posted Aug. 20, 2014 @ 5:51 pm Updated Aug 21, 2014 at 6:48 AM » Social News JACKSONVILLE — The collectible toy soldiers, planes and trains that long set Scheffel's Toys apart from competitors near and far are going away. Like many mom-and-pop operations, Scheffel's is caught between online and big-box discounters that are wooing away customers — and even vendors. Linda Graham returned to the Rogue Valley to take over the family business with her husband, Bill, in 1992. Over the past quarter-century, the store has both reached iconic status in the region and struggled with the new world retail order. Pre-tax margins have been cut in half as buyers scan bar codes and then order from competitors on the Internet, said Linda Graham. At one point three years ago, the Grahams were ready to shut the doors and move on, Linda said. A potential buyer came along, but failed to get financing, leaving the Grahams to rethink their plans. The store on the northeast corner of California and Oregon streets will take a monthlong timeout in January and return in February as Scheffel's Toys & More. Bill, who retired from the Coast Guard prior to moving here, will bow out. Linda, however, is ready to turn the page and continue as a retailer. Instead of hanging out the shingle seven days a week, the new Scheffel's will take Mondays and Tuesdays off, and the back of the building, where many of the collectibles were housed, will be used for storage. From a high-water earnings mark in the 1990s, Scheffel's saw its margins erode as more players grabbed shares of its market. In the early years, Scheffel's Toys considered a broad swath of Southern Oregon and Northern California its backyard.  "Our local area was Brookings to Klamath Falls and Redding to Roseburg," she said. "Up until the advent of the Internet, we had a following that reached coast to coast because we were highly specialized. The Internet diluted the uniqueness of the mom and pops; it's hard to be special and competitive." Seeing that the future included Web operations, the Grahams entered the fray, but found it countered their customer service standards. "We tried to put ourselves out there on the Internet, not understanding the huge behemoth it would become," Graham said. "You can either be really good at retail or be an Internet store, but you can't do both." Purely Internet operators, however, had the advantage in pricing because they didn't have commercial zone rents, property tax and personnel expenses, she said. Suppliers, too, had the upper hand. "Some of our vendors found they could make more money selling on the Internet themselves rather than wholesaling to small business," Graham said. "Wholesaling to small business was not worth their time and effort. That's why trains and soldiers have gone away." Overhead costs have doubled, she said, ranging from worker's compensation to liability insurance connected to toys. Small retailers remain locked in a two-front war, with chains and big boxes digging trenches on the other side. "The rest of us have to figure out how to fit in," she said. "I'm going to counter them with convenience, best product knowledge, quality products, and unbelievable service, because I can't match them dollar for dollar. We've been proving to ourselves during the past year and a half that trains and collectibles are not supporting us." The revamped store will offer souvenirs from Jacksonville and Oregon along with infant and toddler clothing and novelties. "I want to be more diversified, but I don't want to get locked into a certain business model," Graham said. "I don't want to get where I can't wiggle around if I have to reinvent myself again." Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at www.facebook.com/greg.stiles.31 ,   and read his blog at www.mailtribune.com/Economic Edge .   By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Aug. 20, 2014 @ 5:51 pm Updated Aug 21, 2014 at 6:48 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. 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