“I wonder though, that even if they restart Toys R Us, won’t the same problems which caused issues for the company still be there?”
I think that it would restart debt free. However, the big problem wasn’t that they just made a bad decision or two and ended up in debt. The business they were in has been overcome by more agile competitors. When they started Toys R Us, I think there were no real competitor toy stores. Now, there are toys in Walmart and just about every store. Also, the type of toy has changed to be more electronic and less Tonka. Another factor is that there are fewer children now than there were in the beginning. Also, there’s the fact that anyone online and without the expense of a brick and mortar store can offer a toy cheaper and delivered to your door.
If somebody thinks they can bring back Toy’s R Us and make it competitive, they’d have to have a really new marketing idea. I just don’t see it happening. (Though, running a debt free company might make a few people rich for a while.)
Exactly right. By the end, Toys R Us was at the Target-Walmart quality level, filled with the cheapest junk they could get from China. Pretty pitiful.
the model might be, brick and mortar stores where they make real sense to have a physical store, and have a major online and delivery presence. But the online experience needs to be high excellent and work correctly.