It’s sad to hear that the store I grew up loving is closing all of its U.S. locations due to major bottom line issues. Toys R Us, in business for 70 years, accumulated billions of dollars of debt.
What caused this retailer’s demise?
Some have pointed fingers at the usual suspect, Amazon.
However, according to CNN Money, it’s not to blame. They noted that Toys R Us’ financial problems started long before Amazon became a major threat. In January 2005, the company’s debt was downgraded to junk bond status. This was long before Amazon became as successful as it is today.
Yes, online shopping via sites like Amazon did contribute to the decline of Toys R Us and other popular retailers. However, most of Toys R Us issues were that it could not compete with other retailers because the company was forced to focus all of its efforts on paying off its massive debt load.
So, what does this mean for Americans?
The closing of its 735 U.S. stores will mean a loss of as many as 33,000 jobs across the nation, according to NBC News.
Had Toys R Us avoided debt and been able to focus its efforts on PR strategies like social media campaigns and developing their competitive advantage, maybe America wouldn’t have to wave goodbye to Geoffrey the Giraffe.
Are you sad to see Toys R Us go? Comment below!