models and an affordable price—allowing newcomers to get started, and then build on to their first set, rather than replacing it. In 2005, Walthers purchased Life-Like from Lifoam Industries. With this purchase, Walthers acquired the Proto Lines that have become the backbone of their locomotive and rolling stock segments. The Proto 2000 line allowed Walthers to start offering its full passenger train subscription sets with all in-house products. These sets have become some of Walthers' most recognized marketing tools and have recently been adopted by several of their competitors. In recent years, changes in American retailing have hit the hobby industry particularly hard. Some folks have blamed companies like Walthers that have become increasingly vertically integrated for putting many of the small suppliers and Local Hobby Shops out of business. However, the retail trends were more the result of the evolution of mail-order into online retailing and less from direct marketing by distributors. The large distributors like started online shopping sites more as a response to large internet retailers bypassing traditional distribution chains. Walthers has made efforts to protect their network of small local retailers by using MSRP on most products on their websites, which allows the small retailers to remain price competitive. On July 16–18, 2010, Walthers was part of Milwaukee's celebration of the National Train Show, presented by the National Model Railroad Association (NMRA) which was founded in Milwaukee in 1935. Products Walthers sells both its products as well as products from over 200 other manufacturers including buildings, people, scenery, locomotives, and rolling stock on multiple scales. Walthers is considered one of the largest manufacturers, distributors, and retailers of passenger cars from the 1930s to the present. Walthers product lines include: WalthersProto is the highest quality and price tier for locomotives and rolling stock. It became part of Walthers with its acquisition of Life-Like in 2005, including its Proto 2000 product line. WalthersMainline is the middle tier balancing quality and price for locomotives and rolling stock. It was the original product line from Walthers. WalthersTrainline is the starter and lowest cost tier for locomotives and rolling stock. It is targeted at children and cost-sensitive beginners. WalthersTrack offers HO scale track in sizes Code 83 and Code 100. Walthers Cornerstone provides buildings and accessories for all product lines and scales. This was an original Walthers product line launched in 1990. Walthers SceneMaster offers scenery, lighting, figures, loads, vehicles, and