Goodbye Toys R Us And Thanks For The Memories

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As a millennial growing up in the 90s, I loved being a Toys R Us kid. But I’m torn about how I feel about the news that they will be closing all 800 of their stores.

 

Toys R Us replaced toy stores like Kiddie City, that failed to innovate in the 90s:

 

It’s not dissimilar to how Borders pushed out smaller bookstores before finding themselves pushed out by Amazon.

Amazon itself didn’t kill Toys R Us alone. It was a confluence of factors that included Toys R Us being saddled with $5.3 Billion in debt when they were taken over by private equity in 2005, by competition from even larger multi-purpose stores like Target and Walmart, and yes, competition from Amazon and other e-commerce sites. While Amazon had its most successful Q4 ever, Toys R Us reported lackluster sales figures that were the final nail in the coffin.

Obviously this is devastating news for the 64K employees of Toys R Us. Though once Amazon starts rolling out its vision of the store of the future, checkout clerks will likely go the way of the milkman, switchboard operator, film processor, and the flight engineer. Jobs like checkout clerks and truck or taxi drivers won’t survive this century.

On the one hand, there’s some regret that my kids may never have the experience I had running down the aisles of a store dedicated just to toys.

But as a consumer, am I going to inconvenience myself to go out to a retail store to pay more than I would pay to Amazon to ship items to my house?

My grandparents do just that, but millennials aren’t. They may give lip service to the demise of stores they grew up with, but words won’t save retail. Companies that don’t have a strong e-commerce strategy to compete with sites like Amazon will continue to go the way of the Dodo. But until retailers figure that out, my investments in Amazon keep looking better by the day…

Be sure to use up your gift cards and stay tuned for information on sales and closeouts, which will likely be happening soon at a store near you.

Which retail chain do you think will be the next to close the doors?

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64 Comments On "Goodbye Toys R Us And Thanks For The Memories"

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Yair

BDE

Next

JC Penny

H

JC Penny is still open? Wow!

High end hobo

What role do you think recent glitches that DD members capitalized on played in the bankruptcy?

MAGA

The numerous glitches probably made a dent in their P&L’s…but were one of the symptoms of the much larger problematic company mismanagement/lack of customer service etc.

Anon

Zero role.

And why is it so many people here assume it’s DD that does this. The volume here compared to SD is much lower.

TRU

Not that it makes a difference, but this is completely inaccurate. SD has a policy of not showing price mistakes on the front page. 90% of the visitors only look at the front page. Furthermore, clever SD’ers vote down the price mistake threads so that they should be unpopular so that there is a better chance of getting it honored.

DD tweets out the price mistake to thousands of people instantly.

That said, I love getting those tweets and try to snag a good price mistake whenever I can.

Regardless, a price mistake that cost them a few thousand dollars is absolutely nothing in the face of the billions they were in debt.

Anon

I meant more in the terms of deals – like the DD ‘effect’. Many of those have been elsewhere for hours and already barely working.

PM I do agree with as they generally get downvoted instantly and not put on the front page. Some are however but those are generally the less obvious ones.

But yeah, this latest round of incompetence was just a symptom if TRU issues, not the cause of it.

Aussie88

A drop in the bucket, if that.

Copyjosh

None. Orders were mostly cancelled, and even an improbable loss of even ten-thousand dollars lost in sales from a price difference doesn’t fix a multi billion dollar deficit.

paul

.0001 percent 5.3 billion dollars of debt from a private equity company?? how much loss was caused on their 2 price glitches? 20 thousand people got an avg of 1200 each in an extreme example 12 million max. 800 stores/warehouses!! 64k employees? are you kidding me ??

Rech

Will gift cards still work?

Val

Sad. Yes, blame it on Amazon, the scary soon-to-be Monopoly.

Anon

ToysRUs was in trouble when Amazon was still a book store. The amount of debt that had was insane. That and they never adapted. They can blame themselves for shutting down, not the competition.

Chaika

I don’t know for sure but I hope it’s the US Post Office.

Chaim

+1

List

Stores I would bet money on that they are closing in the next two decades or less:

First, the most obvious: SEARS, KMART Land’s End.

Here are some others:

JC Penny
Macys
Best Buy (Yes, them too)
Big Lots
Party City
Michaels
Neiman Marcus
Dillards

And tons of apparel chains, too many to list.

Abraham

Will the site still be open?

@mike

Sears

ml

you really have investments in amazon?

googwallet

NASDAQ: AMZN can be had for $1,580 a piece.

yid

Its a bit funny to see Toys R Us go and BH the yiddishe toy stores thrive more than ever before!

Railz

We are always a decade or two behind

TRU

Hahahahahaha! I like!

Thanks for the laugh.

Isy

Jewish toy stores thrive because Jewish peaple make time in their lives to go out with the kids and get them toys when they deserve it, which is much more exciting for the kids then to buy online.

Jennifer

They’re going to continue to thrive because their focus is not on the latest TV or movie tie in. The last few times I went.to Toys r us were very disappointing as compared to 20+ years ago. Very few toys that weren’t electronic or computer oriented, and mostly the aforementioned tie ins that are meaningless to my Israeli grandkids.

david
Dov

Sorry but millennial or not; there is no comparison between walking the aisles and touching and feeling the toys, trying the different buttons etc and sitting your child down in front of a computer and trying to figure out what they want. Frankly; it’s probably quicker going out to the store. I can buy most everything else online but I think toys- which is for a little child – is different. Sad to see this day.

Anon

Unsure of your point. You can still go to Target, Walmart, Costco and countless other stores with toys or toy stores. TRU was grossly mismanaged top to bottom and it has been over a decade with insurmountable debt. I’m shocked it took this long to be honest.

SS

Totally agree. As a child, it was so exciting to go into the toy store and see all the toys. Now, I love taking my children there as a special “treat” or to pick out a present for a classmate. Sadly, hopping online/on Amazon doesn’t provide that experience.

Judah

Agreed. Amazon is the death place of product discovery and subsequently innovation. Countless innovative toys and kids products were created because they had a retail testing ground to launch at TRU that doesn’t exist anywhere else. Amazon is where you go when you already know what you want. The sad thing is that despite all the mismanagement, they weren’t even losing money, yet still had to close because their investors saddled it with debt. They had no margin for error, and no cash to reinvent themselves for the 21st century.

I also don’t think it’s the last we will see of TRU – they have many profitable locations that a new entity would be interested in taking them over.

shani

does this include babies r us

ME

Yes

Wolf

Sears

Leon

It’s their own fault too.
We ordered 3 different kids clothes ( very small and light weight).
These idiots shipped the 3 items from the same warehouse in 3 different packages, the same day.
You wonder why they lost so much money.
Plus they weren’t innovative.
I walked into a bunch of toys r us stores only to see one was more depressing than the other.

Mendy

My 6 year old boy asked, sadness cracking his voice, “will they come back when Moshiach comes?”

Cg

Macy’s

Aryeh

Interesting. Apparently they are trying to save 200 stores in America (either by franchising or combining with more successful Canadians operations).

https://www.cnbc.com/2018/03/14/toys-r-us-is-exploring-a-plan-that-could-keep-200-stores-open-even-after-liquidation.html

Joe

For a B&M to survive, the retailer has to make itself a destination, not just a warehouse. Aisles filled with toys may have been a draw before e-commerce, but now you have webpages filled with more toys than any store could hold. TRU knew this – and announced plans to create foot traffic – but they never followed through.

In this article they talk about having play areas to try out toys and giving employees the OK to open boxes and demonstrate expensive toys. Experiences you can’t have online (yet!). Would have given a lot of people reason to walk in to their stores. But they didn’t put any of it into practice except the AR (which is pointless).
https://www.usatoday.com/story/money/2017/10/02/toys-r-us-has-plan-save-itself-and-its-unreal/702205001/#

my investments in Amazon keep looking better by th

dont do it dan! dont be busy with stocks big mistake to many gevirim i know personally and have dealt with that got wealthy from their fields of expertise like import/export or real estate in the late 80s and ninties had alot of money sitting around when they turned 50 and they wanted something else so they dumped money into something that they had no prior experience and was not their expertise. thats when they lost 80 percent of it . im one of them. stick to what your good at plus this website probably keeps you enough busy all day anyway.

tony c

its a shame, the brand and store has value, the private equity buyers killed it off with all that debt, no doubt they made tons on the deal and left the brand to die a slow death. They could have competed, they have an edge just like bestbuy is thriving. No one to blame but the people who made that deal back in 2005.

someone

i gave up when the times square store closed, a shame to see such a day

Thomas Gross

Good Childhood Memories. Thank You Toys R Us!

Nighthawk700

I still miss Child World (folded in the 90s).

YitzyS

I want to buy one branch and keep it open as an independent store. I’ll call it Toys weRe Us. Anybody in?

Ewkz

Yitzy… if you have money to waste them please be my guest

Claire

I blame those who use Toys R Us and other stores as a showroom and then order on Amazon. Stores have no way to compete when consumers are dishonest like that.

Hanna

There is still Toys4U in Boro Park.
And Double Play and Toys to Discover.

Lebo

I never shopped at Toys R Us bc their prices are so inflated. I only went there when they clearanced out their clothing in Baby’s R Us. I went today to use gift cards my kids got doe their birthdays and I just couldn’t believe how over priced everything was. As of now they are still processing matching so they price matched what I bought.

Alfontso

Sears. They have eliminated the consumer electronics sections and still maintain overpriced goods throughout.
It is a toss up between JC Penny and Sears.
Many K Mart stores have already vanished over the past three years, which is the beginning of the demise without anyone noticing.
Furthermore, now that President Trump is cracking down on trade I’m balance, those stores with large inventory of imported goods will begin to feel the pinch as UD made goods enter the market once again. What are you going to buy? A shirt made in Nicaragua or China or Jordan, or the one made right here in the US from US grown cotton and manufacture, be it in sore or on line?
Think about it.

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