Toys R Back

  • 4

Toys R Back

About a year ago in September 2017 news came out that the beloved toy store, Toys R Us, was set to file for bankruptcy. They planned to restructure their debt to help with investing and the success of in store and online shopping. Since then, they have closed all 735 stores in the U.S. and discontinued the website, creating an $11 billion hole in the toy industry.

The company could not keep up with the lower priced stores like Target, Walmart, and most notably- Amazon. Originally, Amazon and Toys R Us had an e-commerce deal but ended in a bitter lawsuit. Now, Amazon sells $4-5 million in toys every year. Toys R Us couldn’t bring in as much and the brick and mortar stores brought along huge costs. During the holiday season, Amazon would price toys at low margins and offer flexible shipping costs; Toys R Us simply could not compete, considering they depend only on toys for profits.

Known for its endless supply of toys, dolls, bikes, and electronics, news surfaced this week that Toys R Us will be reviving after deciding it was too valuable to give up. The company plans to “create new, domestic retail operating businesses.” More details and when they plan to do this have not been released, which may cause more questions to be asked regarding the live of the company.

I believe one of Toys R Us’ problems was how late to the game they were with e-commerce. Traffic to their website declined around 40% between 2015-2016. Holiday traffic numbers were also a great indicator of the poor amount of conversions. Businesses that can’t thrive through online and offline stores will struggle against competitors. It will be interesting to see how the company picks back up.


4 Comments

Cedrick Haney

Cedrick Haney

October 4, 2018at 3:10 pm

I agree, this will be interesting to see how Toys-R-Us will bounce back. I wonder if they will decide to open a few stores in the U.S. in the future. They could possibly gain market share now that they will be kind of rare. I think they might take a hit as far as public image because some people believe this was the company’s idea from the beginning.

Ashley Patterson

Ashley Patterson

October 4, 2018at 3:19 pm

I was happy to hear that Toys R Us is planning a comeback, because it’s a childhood memory for a lot of people our age. I wish they’d give more details about what their plan is to get more business, but I’m excited to see what ends up happening.

Elizabeth Phillips

Elizabeth Phillips

October 13, 2018at 3:04 pm

Oh man, this is crazy news. I know our generation was really feeling the loss of Toys R Us because, for us, it was basically an amusement park. I remember learning all about the debt restructuring in FINA 3000, and my heart went out to them.
Totally agree that part of the problem was their late entrance to the e-commerce game!

Xayla Wilson

Xayla Wilson

October 14, 2018at 7:01 pm

The financial impact from Toys R Us closing is crazy! I was distraught by the news of their closing because it is truly a place of joy and great memories for someone people. I’m a little suspicious of them coming back so soon. Countless people have lost their jobs due to their massive closing. I hope these plans are well-thought and truly consider everything until I know a little more I can’t be too happy about them coming back.

Leave a Reply

Join our Email List

Countdown to SPARKsouth

SPARKsouthSeptember 28, 2018
Happy Networking!
< 2019 >
February-July
  • No Events
Subscribe