Toys R Us is a toy and children’s product in America, and its headquarters are located in Wayne, New Jersey. The founder was Charles Lazarus, who started the children’s toy store in 1957 by tracing the origin of the Lazarus Children’s Furniture store. The company has operated the toys business for a very long time, like 65 years ago, with around 800 stores in America as well as more than 800 stores outside America. The company has continuously expanded its branches internationally. The more it establishes more companies outside the US, the more it embodies a customer philosophy of quality selection as well as value under one roof. More so, it strengthens its digital capabilities by opening some e-commerce websites, mobile apps, and Omni channel products in its international markets and making the product more accessible to all its consumers worldwide.
Toys R Us existed during a time when there were a lot of challenges and competition from fellow retailers in the market. The problems of Toys R can be explained as the result of the collapsed retail giant. Due to the demise of this giant toy, many fingers have been directed towards Amazon, corporate raiders, and big box stores. However, it was Toys R Us that gave them this chance, and due to their existence, it led to their failure. Moreover, the company did not take care of the stores that were based, and they did not prune the stores that were not making a profit. Shuttering of its 738 led to troubles that are facing the company up to now. However, the liquidation process will throw up many challenges. Retailers in America and Europe have abandoned Toys R Us and spend most of their time in big box stores as well as online. The online company Amazon is benefiting from the collapse of the giant toy company. The most significant mistake that Toys R Us made was accommodating a lot of debts that overpowered their ability to repay them. More so, failing to restructure its business like its competitors, such as Amazon and Wal-Mart, has led to more of it failing to catch up with its competitors. The store has been saddled with debts, which makes it difficult to keep up with its competitors. However, the brand has tried to come up with some initiatives, such as rebranding, among others, but its competitors are still way far from it.
Toys R Us has a strategic plan known as a category killer. They have specialized in the selling of unique varieties of toys that could not be found in any other toy retailers. It helped it prevent its competitors from surviving in the toy market. The cause of this brand’s struggles is the debt it is still holding. Additionally, the way its competitors are carrying out their marketing process that has enables their shining in the market and consumers have embraced the new selling techniques and sales $ 80 billion profit.
As a consumer, I am concerned about the fall of Toys R Us, which has not been competitive enough. One was that Amazon’s online services are not as fast in delivery as Amazon’s. They should have provided active online services such as shipping and competitive pricing. It is not making clearance, which means that they are not making enough sales.
References
Byrnes, N., Palmer, A. T., & Hawkins, L. (2000). Toys’R’ Us. Business Week, 48-53.
Schiffman, C. (2001). Toys R Us. The Southern Review, 37(3), 572.
Kalakota, R., & Robinson, M. (1999). E-Business. Roadmap for Success: Addison Wesley.
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