Toys “R” Us retailing challenges – competitor impact

An article in the New York Times (April 7,2012) describes competitors to Toys”R” Us, and the resulting sales challenges. Target and Wal-Mart have slashed toy prices, with Wal-Mart allowing layaway. Amazon.com continues to be aggressive in the toys category while also attacking diaper sales. Sales of electronic games like Nintendo have declined as kids switch to apps. Toys “R” Us has responded by increasing its share of private label (of KB Toys and FAO Schwarz brands it owns) to 50 % of sales and using pop-up stores during the holidays to permit shopping convenience. What credible competitive choices can Toys “R” Us make to survive ? Can custom toys or Build-A-Bear type options enable the store to become a destination ? Or should the company move to toys rental – similar to Toygaroo ?

About aviyer2010

Professor
This entry was posted in Ecommerce, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , . Bookmark the permalink.

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