Strategic lessons from the Toys R Us death

Marcus Newton
March 22, 2018

If you haven't visited a Toys R Us recently and happen to live near one, you might want to take a minute to call the store this week and see if the sale has begun. "Now, with the closing of [Toys R Us] so quickly, it caught us by surprise so we've spent the last few days with our team and leaders in the toy industry to figure out how we can accelerate the project so our stores can open for the Christmas season", he said. In a court ruling, Toys-R-Us said that their competitors would price toys "at low-margins or as loss-leaders" meaning they deliberately took a hit on toy revenue with the hopes of putting the final nail in the coffin for the long-time toy company.

Grab your purses and wallets because Toys R Us just announced the start of its liquidation sale. The teen jewelry and accessories giant Claire's is another retail giant that has succumbed to financial troubles, declaring bankruptcy and announcing the closure of over 90 stores around the country.

So what can credit unions and banks learn from Toys R Us? The company initially filed for bankruptcy last September, citing more than $5 billion in long-term debt.

We went to a Toys R Us store in Yonkers, New York, that was part of the initial round of store closings.

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Strategic Marks purchased the "Great American Toy Store" (KB brand) from Bain Capital in 2016.

Finally, we increased spending to facilitate sales, including advertising and promotional dollars, along with SG&A deleverage due to the lower sales base, further impacting overall near-term profitability.

"As a first-time mom, I didn't want to shop online".

"$358.00 that we were expecting back from them".

Other reports by MaliBehiribAe

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