Title: Going Out of Business – Toys “R” Us | The Connectere
Headings: Going Out of Business – Toys “R” Us
Going Out of Business – Toys “R” Us
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Content: Or perhaps it was when the company was bought out by private equity firms in 2005? Now, let us find out why did Toys “R” Us fail? The undercutting of prices by Walmart in 1998 served as a sign for trouble ahead. At one point, Toys “R” Us was considered as the most important toy store in the world. But even with its first-rate toys and hundreds of stores, it could not keep up when faced with competition from retailers like Walmart, Target and most importantly, Amazon. While Toys “R” Us, being a brick and mortar store, was still pulling $792 million annually in the 2000s, it wasn’t swift enough to compete with a giant like Amazon. When the company finally decided to revamp its website in 2016, its uphill battle was to catch up on 10 years of innovation. Consequently, the company struggled in the face of rising e-commerce popularity. In the liquidation filing, Toys “R” Us pushed the blame for its poor performance (which was low enough to prevent it from competing and making a profit) on Walmart and Amazon. Amazon and Walmart are not the only factors to blame for the sinking of Toys “R” Us.