TOYS R US DOWNFALL 1
Discussion Board #4
Toys R Amazon, Walmart, and Others, but Not US
Raul Saez Jr.
Liberty University
Author Note
Raul Saez Jr.
I have no known conflict of interest to disclose. Correspondence concerning this article should
be addressed to Raul Saez Jr.
Email: rsaez@liberty.edu
TOYS R US DOWNFALL
Toys R Amazon, Walmart, and Others, but Not US
Step 1: Define the Problem
During the first 10 years of the 21 Century when you thought about toys the
st
retailer that came to mind was Toys R Us. Possibly the world’s largest toy store chain.
According to the case, Toys R Us suffered a huge set back that inevitably became the
company’s down fall. Some argue the company’s fate was sealed back in 2005 when Cain
Capital took the company private and buried it in debt to do so (Kinicki, 2021, p 676).
Unable to compete with other store such as Walmart, Target and Amazon, online sales
modes and the lower prices offered by it competition, in 2017, Toy R Us filed for
bankruptcy. Toys R Us was never really able to recover and had to closed over 700 stores
and put approximately 33,000 people out of work. The primary reason for the company’s
downfall came at the department stores inability to adapt to the changes to consumer
preferences, the hostile completion, and poor management decisions. In 2019, investors,
under the name Tru Kids Brands, purchased all Toys R Us and Baby R Us trademarks,
private toy and baby brands, and all other assets to include the mascot Geoffrey the
Giraffe.
Step 2: Identify Causes of the Problem
There are several causes that contributed to the downfall of the retail toy giant.
