Following bankruptcy four years ago and a failed relaunch a year later, the Toys “R” Us company is hoping to become the favorite place for children to purchase toys once again. The question is, how will the company do it differently this time? Let hit this from where it all started.
A Bankruptcy and a Failed Startup prior to the Pandemic
A bankruptcy filing of $5 billion four years earlier led to the company’s resurrection. Furthermore, the brand was previously relaunched unsuccessfully one year ago. The last time it relaunched, the store focused on smaller stores and experiential events where children could try out toys before purchasing them. Parents could even arrange birthday parties in the company’s stores.
Not quite long after that, the COVID-19 pandemic hit and there was a new medium of purchase — online buying — which altogether led to the company closing its stores again. Also, similar companies such as Payless Shoe Source, Gymboree, Lego, Mattel, and Hasbro are either bankrupt or facing financial difficulties.
Read More: U.S. Announces Diplomatic Boycott of 2022 Winter Olympics in Beijing
Toys “R” Us Gets a New Look and Attitude
Yehuda Shmidman, CEO of Toys “R” Us, said to USA Today that the store is “back in a mega way. This is going to be our largest format store in America.”
In New Jersey’s American Dream mall, Toys “R” Us will open its new 20,000 square foot flagship store in mid-December. Over 10,000 toys will be housed in the store, which includes a café, slide, ice cream parlor, and an ice cream parlor. By opening up its doors now, the company hopes to be able to serve last-minute Christmas shoppers.
Don Ghermezian, CEO of American Dream, believes Toys “R” Us would make a fine addition to the mall. As reported by USA Today, the store will be located near several attractions including the Nickelodeon Universe Theme Park and the Dreamworks Water Park.
Toys ‘R’ Us’ return is different from previous efforts because it aims to provide children with experiences, not just toys.
According to Neil Saunders, managing director of consultancy GlobalData Retail, “Opening in American Dream is sensible as the mall will attract a lot of family shoppers who are potential customers. The evolution of the format to include things like experiences and an ice cream shop is on point as it gives people reasons to visit over and above simply buying products.”
Read More: Omicron COVID Infected 60 People at a Christmas Party!
What are the Chances of Toys “R” Us Surviving?
In addition to the different stores in 25 countries around the globe, Toys “R” Us has its first flagship standalone store in New Jersey, United States. A wide variety of Toys “R” Us pop-up shops will also be available at Macy’s locations next year. The company’s CEO is confident things will turn out differently this time around.
USA Today quoted Shmidman as saying the store is “back in a mega way.” It remains to be seen whether the company’s new strategy will work, but it continues to believe that providing a positive experience will result in customer retention and good revenue.
