Toys ‘R’ Us to Close 20 Percent of Stores, Expand Focus on Loyalty Programs, Web
POSTED ON [link to article]
Toys ‘R’ Us plans to shutter up to 182 stores as part of its bankruptcy reorganization plan.
WAYNE, N.J. — Toys ‘R’ Us is planning to shutter up to 182 underperforming stores across the country as part of its Chapter 11 bankruptcy reorganization plan.
The planned closings represent about 20 percent of the retailer’s U.S. store fleet, or a collective 6.9 million square feet. The Wayne-based toy chain, which filed for bankruptcy last September, has been fighting to stay relevant amid competition from the likes of Amazon, Walmart and Target.
Online sales of toys have picked up in recent years, and are continuing to increase. According to a survey from Fung Global Retail & Technology, roughly 14 percent of consumers said they preferred online shopping in 2016, up from 7 percent in 2011.
“An integrated e-commerce platform with better consumer service and unique offerings remain the biggest in-store problem.”
“An integrated e-commerce platform with better consumer service and unique offerings remain the biggest in-store problem,” says Emil Gullia, executive vice president and principal of Retail Specialists. “Many big boxes are pushing price as the only catalyst for a visit. That is not enough of an appeal to anyone compared to the convenience of e-commerce.”
