Toys "R" Us a toy store that started in 1948 and was founded by Charles Lazarus. Over the years, the company has touched the hearts of many kids coming in to grab their favorite trending toy to play with. However, time changes things, especially in the business industry and, unfortunately, it hasn't been kind to the Toys "R" Us company. In fact, this year may mark the year that the company shuts down for good and, for some, that is heartbreaking.
It all started with the competition that emerged and worked against them. While Toys "R" Us was unique with its variety of toys, other stores like Walmart and Target can contend with them, not just toy-wise, but also by making profits off other items that consumers want, not just toys. Another big competition that the company faces is Amazon. The huge network and deals that it offers to customers really hit hard for Toys "R" Us. In a USAToday article, one reason why those markets outplayed them is their selling of products at "at low-margins or as loss-leaders." An example would be the holiday shopping season. It had some great online shopping options that Toys "R" Us could not compete with.
Another article from Businessinsider explained in depth why the company couldn't compete well with its competition. Walmart has been building out its toy selection, adding a number of exclusive products, and it also boasts a brick-and-mortar network that makes it accessible for former Toys "R" Us shoppers who still want to shop in-store. Target has a location within five miles of 90% of Toys "R" Us stores and 96% of Babies "R" Us locations, according to research from Credit Suisse by Business Insider. Amazon may be able to capture Toys "R" Us' online sales and grow its toy business and in turn makes Toys "R" Us keep losing its sales over time.
As tragic as this event is, there is still a chance that this company can survive. According to an article from USAToday Toys "R" Us may plan to start a GoFundMe in an attempt to save the company from bankruptcy. Larian, chief executive of California-based MGA Entertainment Inc., a privately held toy and entertainment company, and other investors have pledged over $200 million. They want to raise another $800 million in order to make a $1 billion bid to acquire the same article that Larian was interviewed said "all or some Toys R Us assets through the bankruptcy process." "If there is no Toys R Us, I don't think there is a toy business," Larian said.
With more and more stores closing as each day passes, the news is still the same with Toys "R" Us shutting down. For the sake of the people who still enjoy seeing this company thrive, let's hope that it's not over yet.
