It’s the end of an era. Toys R Us will be closing all of its U.S. stores after battling debt struggling to stay relevant in today’s culture. What happened to the king of all toy stores? There’s not one answer to that question, but a lot of it had to do with not being able to focus on the right priorities.
Don’t get me wrong, I’m sure Toys R Us had the right priorities in mind when it came to the decision making process, but their debt is what dictated what they could and couldn’t do.
According to a CNN report, Toys R Us was spending $400 Million a year trying to lower their debt, which was around $5 BILLION at the end of last year. This meant that a good chunk of their income was being tied down, where they would have rather used it improve their brand image.
All of that, paired with the fact that certain competitors were raising their minimum wage, meant that they were struggling to find adequate employees that would make the stores more comfortable to shop in. It was like Toys R Us was trying to dig itself out of a hole that was being filled in at a much faster rate.
Not to mention, stores like Walmart and Target were becoming more and more popular among people shopping for toys. They couldn’t compete while trying to stay afloat at the same time.
There were reports that Toys R Us had intentions of improving their overall store appearances by adding playrooms and making it a better environment to shop in altogether. Sadly, they will never get the chance.
CNN claims that the decision to close stores came far too late in the game. Perhaps if they made the decision a lot sooner, they would have bought themselves more time to figure out what to do.
Toys R Us has been in business for 70 years and it will be sad to see it go. There aren’t many toy stores left these days. Hopefully some new company will fill the void that is left when Toys R Us finally disappears.