In another self-inflicted wound, Toys R Us never fully matched its rivals’ lower prices, said Johnson.įor example, a Nerf Blaster by Hasbro that sold for $49.99 at Toys R Us late last year sold for $39.97 at Walmart, $44.99 at Target and $34.26 at Amazon over the same period, according to BMO research. “They were never a threat to anyone online.”
“Their corporate culture never grasped e-commerce,” said toy industry consultant Richard Gottlieb. The suit was settled in 2009 - but by that time, Toys R Us was woefully behind in the online arms race. “If they hadn’t panicked, they might have been ahead and not playing catch-up on e-commerce,” the insider said.īy 2004, Toys R Us, claiming that Amazon was selling other companies’ toys, sued Amazon to end the deal. The move, which would seem absolutely bizarre today, came because Toys R Us “panicked,” said a toy industry insider who did not want to be identified. “They got hosed by Amazon and taken advantage of.” “That was a terrible deal for Toys R Us,” said BMO analyst Gerrick Johnson. The deal may have given Jeff Bezos’ online giant a leg up in the toy business - an advantage it used to steal away precious customers. Perhaps the first self-inflicted wound came in 2000, when Toys R Us, struggling without a viable e-commerce platform, inked a 10-year deal to become the exclusive toy seller on Amazon.Īt the time, shoppers going to would end up on Amazon. Toys R Us said Thursday it was giving up its fight to stay alive, and that it was killed by vendors that failed to support the 70-year-old chain, by rivals whose predatory prices created a long string of losses and by the media focus on its travails.Ĭhief executive David Brandon ticked off a long list of suspects, including Target, Walmart and Amazon.īut a look at the actions and inactions of the once-mighty chain reveals the long-troubled retailer wasn’t murdered - it committed suicide.
Toys R Us is coming back next year for holidays, teaming up with Macy's Toys R Us reopens in Macy's stores in 9 states, more 'coming soon'įormer Toys 'R' Us CEO warns of record retail bankruptcies by fallĪ giant Ferris wheel is coming to Times Square
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