Toys R Us Case study

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TOYS "ß" US CASE STUDY

"Toys R Us" had been the biggest and fastest growing toy and children specialty chain in the world before the environment for toys started to change early 10's. Discount stores like Wal-Mart, K-Mart and Target start selling toys at cost or much more lower than cost to attract customer traffic. Although Toys R Us was the biggest toy store it couldn't keep loosing its market to these competitors due to

• Toys R Us didn't use any effort to monitor the changes in customer shopping behaviors and needs

• The stores become old, unfashionable but no changes are made

• Poor service and low-paid inefficient employees

• it could not compete with the discount prices of competitors

• They were so profitable before that many companies enter the sector and become threats

• Low inventory turnover than competitors

• Warehouse and inventory systems were mess

Toys R Us are now trying to solve its problems one by one taking aggressive actions to get his place back to number one from its competitors and these actions seems to work as we look at the facts below

Current state of Toys R Us

• Sales started go up (average % for every quarter)

• Company credits careful inventory management

• Strong expense controls for the positive numbers

• Improved service

• Remodeled stores wider aisles and lower shelves to keep customers navigate better and find toys easier

• Created several new mega stores that will include a Kids R Us, Babies R Us

• Impressed customers due to the changes made

• Successful partnership of Toysrus.com with Amazon.com takes the burden of handling orders, including shipping and customer service in which Toysrus.com was having troubles

• Price cuts on hundreds of toys

• Strengthen, expanded brand portfolio and development of new businesses

• Times Square flagship store attraction for any family- media center for the toy industry

• Build Imaginarium learning category with Leapfrog, Madeline and Thomas & Friends brand products

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