Toys R Us, the infamously discontinued toy retailer, has recently made plans to restructure and return to the market over the coming years. In January 2019 the company emerged from bankruptcy under the title Tru Kids. The restructuring plans include smaller scale stores around a 1/3 the size of their previous, and a partnership with former competitor Target as a redirect for their online sales. As of today the company has opened two locations under the new structure.
The original failure of Toys R Us is an example of not adapting to the preferences of consumers as well as the disruption caused by online retailers. The restructuring attempts seem to show a greater understanding of their customer base and the current market today, however an issue even larger than the prevalence of online retailers is simply that children today are not as interested in toys. This presents a unique selling issue to the company and it will be interesting to see how they intend to overcome this daunting obstacle. Selling to those who are not interested in the product itself is a daunting and potentially futile task.
I HAD NO IDEA ANY OF THIS WAS HAPPENING!! Businesses coming back after a failure is incredibly brave and can have extremely varying results. I am excited to see what comes of the business and will definitely keep an eye out for them. Thanks for the information!
Hey, this is soo cool. I’m so happy that the store has decided to make another run for it. It’s so interesting that the first time they went down was because they weren’t adapting to the customers wants, it makes total sense I just never thought of it in that way!
ToysRUs was an example that had a good business model but failed to adapt in time to the changes of children’s preferences. Theoretically, people are always going to have kids and they’ll always want new toys to play with, but the store did not adapt so they could offer toys via electronics, which is what kids want nowadays. Great writing.
I am glad they are making a comeback!
I hope they learn the value of always being attuned to their customers’ changing needs, rather than assuming what they want.
Very interesting post! I am excited to see how the company will adjust their strategy for this comeback. With so many stores closing down, it is great to see one trying to make a comeback, I hope it is a success!
I think you make a great point at the end. What do you do when the problem doesn’t lie with your sales experience, but rather what you are selling. If customers aren’t interested in your product then it makes selling the product and generating profits extremely difficult. This is something that may not be considered when thinking of sales but is important to remember, nonetheless.
Really cool post. Thanks for your research and insight into this interesting topic