Last Updated on December 26, 2019 by Danielle
Toys R Us announced its plans to shutter over 180 retail stores, as it attempts to rebound from its bankruptcy filing last year.
Toys R Us, the world’s most-recognized toy specialty retailer, announced plans to shutter 182 of its retail stores across the United States. This represents roughly about one-fifth of all of its retail locations. Of the 182 retail locations, 27 of the stores planned for closure will be from the state of California while there will also be quite a significant number of closures in New York and New Jersey. Roughly about a dozen or so stores will be converted to co-branded locations. However, If Toys R Us can renegotiate its leases, it may not have to close all 182 retail stores. Last year Toys R Us announced plans to overhaul its website in an effort to deliver an enhanced online experience.
When I was a child, Toys R Us was once my favorite destination to get the latest Nerf guns, LEGOs, video games. I remember being enamored by all the latest and greatest toys, video games and more. The embattled retailer needs to get back to those glory days while incorporating new ideas to get customers into its stores and overcome the Amazon Effect. The retail scene offers many advantages over online like the ability to physically see and play with the toy before making a purchase. That unique experience simply hasn’t been replicated online yet. Toys R Us may need to think outside the box to have the online experience complement the retail experience to deliver a truly unique and gratifying experience.
You may recall Toys R Us filed for Chapter 11 bankruptcy protection in September of 2017 after four consecutive years of losses. It has not been profitable since 2013. Now it has accumulated about $5 billion of outstanding debt, so this is part of its major restructuring plan to remain solvent. Now it is attempting to reemerge from its bankruptcy filing and move the company forward to better times ahead. It is important to note that the company is not completely going out of business – it is simply attempting to strategically close unprofitable locations to avert financial disaster.