For anyone who grew up in the 90s, they most likely have fond memories of going to Toys R Us to pick out birthday and Christmas gifts. However, with more of today’s youth being focused on digital media and devices, the retail giant Toys R Us doesn’t hold the same appeal. They are feeling the retail crunch that has been affecting the market. With online giants like Amazon taking care of a large portion of Christmas shopping, we are even seeing large retailers like Wal-Mart suffer.
Toys R Us has just announced that they are preparing to shut down 25 stores. Toys R Us is trying to restructure their debt with their current creditors. If less than 75% of the creditors do not agree with the closure of 25 UK stores being enough, it looks like Bankruptcy may be the only option for once retail king Toys R Us. Retail across the board is facing big changes. Not as many shoppers are as excited about hitting the stores as they used to be. Even during the busy holiday season, more shoppers are turning to online retailers. Retailers in every industry will have to reassess their strategy and rethink their big-box store models.
One of the problems with the Toys R Us business model is that their stores don’t offer any special appeal or free entertainment. When you go to a Disney store, you are able to see your favorite movies playing on TV. There are meet and greet events. From the sparkly red floors to the amazing lighting overhead, the Disney store has every last detail planned out. However, Toys R Us has never been too concerned with how their stores look. They always banked on the fact that they had the largest selection. However, with major online retailers that have a virtually endless selection of toys, their model is outdated.
It will be interesting to see what the next few years have in store for Toys R Us. As the retail market is quickly and greatly changing, it will be interesting to see just how they adapt. If they are able to avoid bankruptcy, they will still have to figure out how to compete in this digital age. The times when mascots and cartoon based television ads reigned supreme are over. If they don’t grow a stronger online presence, bankruptcy may be inevitable after a certain amount of time.
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