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Forums - General Discussion - TOYS 'R' US is considering closing all of it's U.S. stores

barneystinson69 said:
UltimateGamer1982 said:

Ever heard of nerf? Plastic guns with fake foam bullets. 

Haven't been into that sort of thing since I was 10 XD.

I was never been into them myself. Although I remember my dad buying me and my brothers each a BB gun when I was 9 or 10. But that was back in 91 or 92. 

I was more a fan of the super soakers as a kid. Not sure if they still make those. 



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Not surprising. Bad business decisions have finally caught up with them.



When I went to get Xenoblade 2, Target didn't have it, Walmart was no good, and Best Buy failed me aswell. Only ToysRUs had the game, so for that I'm thankful to them and hope they don't close the one near me.



CaptainExplosion said:

There's just gotta be something that can save Toys R Us, but what?

Furthermore, the toy industry needs Toys R Us to survive, or it'll lose a huge chunk of yearly income.

I know Amazon might be part of the problem, but what if that's not the case?

It's been a multitude or problems yes, but I think it was inevitable since they didn't adapt well to the unfortunate trends and other bad decisions. 

https://youtu.be/4JYUo9WKkao



I loved Toys R Us when I was a kid. Probably 75% of my video game purchasing took place there in my early childhood. I still enjoy my annual trip there (during the holidays, just for old times' sake), checking out the huge variety of toys. But, I don't by much there anymore. Target and Walmart have much better prices, and enough selection to meet my needs. So, while I miss having an awesome big-box toy store, I can't say this is a surprise. The business model just doesn't work in 2018.



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TheLegendaryWolf said:
CaptainExplosion said:

There's just gotta be something that can save Toys R Us, but what?

Furthermore, the toy industry needs Toys R Us to survive, or it'll lose a huge chunk of yearly income.

I know Amazon might be part of the problem, but what if that's not the case?

It's been a multitude or problems yes, but I think it was inevitable since they didn't adapt well to the unfortunate trends and other bad decisions. 

https://youtu.be/4JYUo9WKkao

That video puts it pretty well ... it's not all Amazon per se.

The group that took over Toys R' Us in 2005 did so by using a leveraged buy out which basically means they borrowed money to buy Toys R' Us (billions of dollars) and that money is actually debt that Toys R' Us carries, so their debt exploded astronomically for non-operating business reasons. 

Yes trends are shifting, but it's really mainly that debt that is killing them, that they shouldn't have, it's not debt from bad business years, it's debt from someone that borrowed money to buy them (which to be honest IMO is shady). 



Please don't close D:



Ka-pi96 said:
Rab said:
Eventually almost all stores will disappear as we continue to buy online, just the way it is now

Will never happen. They'll always be people that like going to actual shops and they'll also be occasions where people are too impatient to wait for an online order to be delivered.

They'll be less demand for actual stores, but that will just mean rent prices will be forced down meaning the remaining ones won't need to sell as much to remain profitable and so it will be easier for them to stick around. Plus, some stores (coffee shops) will keep appearing rather than disappearing

Well all is ofcourse hypberbole but it seems to going fast.   When the economy is doing well but you still lose 30K retailjobs in December (that's basically the Prime time for retailers to hire people) you know retailers is hurting.

So many people own amazon prime and even hase same deal dlivery so the wait isn't that long especially if the number of retailers around you are closing and you only option is a 45 minute drive to a shop and back.

Just a small list of some of the biggest one who are closing down some stores:

Abercrombie & Fitch

The once-prominent fashion retailer said during its fourth quarter earnings call that it would close as many as 60 U.S. stores in 2018 through expiring leases, while also adding 11 U.S.-based full price store locations. Abercromie has placed an increased emphasis on its direct-to-consumer efforts, with CEO Fran Horowitz called the brand's "biggest storefront."

Abercromie & Fitch shuttered about 40 store locations in 2017.

Aerosoles

The New Jersey-based women’s footwear company filed for bankruptcy last year and announced plans to move forward with a “significant reduction” of its retail locations. While it’s unclear how many of Aerosoles’ 88 locations will be affected, the chain said it plans to keep four flagship stores in New York and New Jersey operational, NJ.com reported.

American Apparel

A fashion brand known for its edgy offerings, American Apparel shuttered all of its 110 U.S. locations last year after filing for bankruptcy. The brand has since been acquired by Canada-based Gildan Activewear, which acquired its intellectual property in an $88 million deal.

BCBG

The Los Angeles-based brand listed liabilities of more than $500 million when it filed for bankruptcy last February. The chain closed 118 store locations nationwide last year, though more than 300 remained in operation under a company-wide reorganization.

Bebe

The women’s apparel chain closed all of its remaining 168 stores by last May, days after it said it was exploring “strategic alternatives for the company” amid plunging sales.

Bon-Ton Stores Inc.

The struggling department store filed for Chapter 11 bankruptcy, according to court papers filed in February. The chain, which operates 256 stores in 23 states, also announced it plans to close 42 stores in 2018 as part of a restructuring plan.

The Children’s Place

A fixture at shopping malls, the children’s clothing retail said it will close hundreds of store locations by 2020 as part of a shift toward digital commerce.

CVS

The pharmacy retailer said it would close 70 store locations in 2017 as part of a bid to cut costs and streamline its business. CVS still operates thousands of stores nationwide.

Foot Locker

The sports retailer told investors on March 1 that it would shutter about 110 stores in a push to focus on higher-performing store locations while also opening about 40 new stores. Foot Locker closed more than 140 stores globally last year.

"We continue to prune the fleet of under-productive stores and open a few select, high-profile stores," CFO Lauren Peters said in a call with investors.

Guess

Guess announced plans to close 60 of its struggling U.S. store locations in 2017 as part of a plan to refocus on international markets.

Gymboree

The kids clothing retailer confirmed last July that it would close 350  of its more than 1,200 store locations to streamline its business and achieve “greater financial flexibility,” according to CEO Daniel Griesemer.

Hhgregg

The electronics retailer said it would close all of its 220 stores and lay off thousands of employees when it failed to find a buyer after bankruptcy proceedings.

J. Crew

The preppy icon, which once thrived under the direction of retail guru Mickey Drexler, is thriving no more. During a November conference call, COO and CFO Mike Nicholson said the number of planned store closings will move to 50 up from the 20-30 originally announced. "We are committed to driving outsize growth with strong e-commerce capabilities complemented with a more appropriately sized real estate footprint” said Nicholson as reported by Fashionista.com.

J.C. Penney

The department store chain closed 138 stores last year while restructuring its business to meet shifting consumer tastes. The retailer also announced plans to open toy shops in all of its remaining brick-and-mortar locations.

The Limited

After a brutal holiday season in 2016, the clothing chain closed all 250 of its physical stores last January as part of a bid to focus on ecommerce. The closures reportedly resulted in the loss of about 4,000 jobs.

Macy’s

The major retailer said this month it would shutter an additional seven stores that were previously undisclosed and lay off some 5,000 workers as part of an ongoing effort to streamline its business and adjust to a difficult sales environment.

Macy's says it has now revealed 81 of the 100 store closures it first revealed in an August 2016 announcement.

Michael Kors

With same-store sales plunging, the upscale fashion retailer said it would close as many as 125 stores  to adapt to a difficult, promotional sales environment.

Payless

The discount shoe retailer filed for bankruptcy last April and has moved to close about 800 stores this year.

RadioShack

The once-prominent electronics outlet shut down more than 1,000 store locations earlier this year. The brand now operates just 70 stores nationwide, down from a peak of several thousand.

Rue21

The specialty teen clothing retailer confirmed last April that it would close up to 400 of its more than 1,100 locations and later filed for bankruptcy last May.

Sears/Kmart

Sears Holdings is one of the most prominent traditional retailers to suffer in a challenged sales environment. The brand shuttered 35 Kmart locations and eight Sears stores last July and has closed more than 300 locations last year amid pressure from ecommerce outlets, USA Today reported.

Toys R Us

Toys 'R' Us informed employees that it would sell or close all of its more than 700 U.S. stores -- a move that could cost as many as 33,000 Americans their jobs, according to the Wall Street Journal. The venerable toy outlet filed for bankruptcy last September amid mounting debt and pressure from wary suppliers. Sources within the company told Bloomberg earlier this month that a liquidation of Toys R Us's U.S. operations is seen as "increasingly likely" after weak holiday sales and a lack of interest from potential buyers. The company has already closed nearly 200 U.S. stores, according to reports.

Wet Seal

The teen fashion brand shuttered its 171 stores last year after previously filing for bankruptcy in 2015. Declining foot traffic at malls and pressure from competitors like Zara and H&M contributed to Wet Seal’s demise.






To be honest, I thought that they were already doing this.



I went in local Toys R Us recently I got that K-Mart vibe of a store that was rotting with few employees and many aspects of the store ill maintained. They had aisles full of items on clearance for 30% that clearly were not moving. Even at price parity or better people seem to not want to drive and sift through toys to find the one they want.