Toys R Us not able to compete with online retailers
Toys R Us is set to shut all 100 UK stores with closures beginning this week after the company were unable to find a buyer, The Telegraph reports.
Here are some key facts about the toy retailer
– 3000 employees will be out of a job following the closure
– The first Toys R Us store opened in 1985
– They have a debt of £250m
In a press release from Moorfields (restructuring and insolvency specialists), they state on behalf of the toy retailer that although they have failed to secure a buyer, ‘they remain open to interest from potential buyers for parts of the business’.
The press release ends with the information of the store closure program and the statement that the ‘remaining 75 Toys “R” Us and Babies “R” Us stores will remain open until further notice’.
The BBC reported the five reason they consider for Toys R Us closing:
– A lot of store are located out of town, which can ‘mean out-of-sight’
– Children want different kind of toys than the ones that Toys R Us sell. Toys R Us failed to catch on to the toy trends
– They have been pushed out by Internet companies and the competitive prices that they offer
– The interior is not inspiring and doesn’t encourage you to make a purchase
– The company remained static
YouGov also explored the reasons for the failure of Toys R Us. In their report they stated ‘once a brand is in trouble, and the public learns about it, it very hard to turn around.’ When the news of the company’s financial difficulties, their Buzz score fell from +2 to -25.
YouGov express a similar view to the BBC that Toys R Us struggled ‘to adapt to the changing habits of the consumer’. The report ends with the countering statement ‘it is too simplistic to blame online rivals, the bran had lost its lustre of its heyday’.