Toys ‘R’ Us, one of the largest toy retailers in the world, officially filed for bankruptcy on Sept. 18. The company was founded in 1957 and was a dominant player in the U.S. toy market, but it has been struggling ever since Amazon came around.
More and more consumers have been rushing to Amazon’s website and other online retailers for their children’s toys, as it’s more convenient for customers and families to stay in the comfort of their own homes while they shop. By online shopping, customers can purchase their items in only few clicks. In today’s society, the majority of customers would rather spend minutes shopping online than spend hours shopping in stores.
Because of this, Toys ‘R’ Us sales have been falling dramatically across the industry, while Amazon’s toy sales have risen to almost $4 billion in 2016, the Toys ‘R’ Us revenues fell.
But don’t worry, Toys ‘R’ Us has not officially met it’s demise. The toy retailer has only filed that they are bankrupt, but that does not necessarily mean that the store will be shut down forever.
"At Toys R Us, we're taking the right steps to ensure that the iconic Toys ‘R’ Us and Babies ‘R’ Us brands live on for many generations," the Toys ‘R’ Us company wrote on their Facebook account this past Tuesday. "Most importantly – It's business as usual! All of our stores around the world are open, and you can also continue to shop online."
Toys ‘R’ Us plans to attempt to save the company by restructuring and renegotiating their almost $5 billion in debt. The Toys ‘R’ Us company plans on keeping all of their stores in the United States open well past the holiday season, so you will still be able to do all of your toy shopping at Toys ‘R’ Us.