Sad but inevitable describes the just announced liquidation of Toys R Us
Memories of visiting the stores at Christmas and for birthdays are a part of our lives, whether it was to pick out that first bicycle, Barbie House, video game or toy truck, for generations that grew from children to parents to grandparents but remained “Toys R Us Kids” this is a both a fond remembrance and a text book case of how a business fails.
The list of causes is long but telling:
- Too much debt from a Venture Capital led buyout
- Lack of investment in Technology and antiquated eCommerce systems
- Pressure from Target, Walmart and Amazon
- Changing taste of their key target audience
- The generational shift in demographics which produced a smaller pool of children
Maybe it was a perfect storm, maybe it was a failure of leadership but it is certain that a retail icon will be leaving the landscape. There is the possibility that the Canadian operations and 200 US stores could survive but that is not certain, if you have one of their gift cards you better use it soon.
One questions I would like to have answered, who gets custody of that famous jingle?
A question you might have is which technology should your business invest in to improve your eCommerce operations and ensure profitability? We would be happy to discuss that with you, just contact us at firstname.lastname@example.org.