6 years ago
6
Toys R Us blames bankruptcy on millennials not having kids
Toys R Us will close or sell each of its more than 700 locations in the US. In the company's most recent annual filing, it cities declining birth rates as a threat to sales. Births have decreased rapidly since 2008 in the US, especially among millennial women. Toys R Us was one of the last national toy chains, and other similar retailers could be in trouble. Millennials are defined as those born between 1981 and 1996. They're more college-educated and marry later than previous generations.
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I think the blame lies in their lack of innovation. Quit being a sore loser ToysRUs!
And competition from the likes of Walmart and Amazon had nothing to do with it.
Nothing!
It seems clear to me that when Bain Capital bought them and saddled them with 5.3 Billion in debt that that is what killed them, nobody can get out of that kind of debt without complete bankruptcy, which they are learning.
Mitt "The Buzzard" Romney's Bain Capital, which goes some way to explaining the vacuous scapegoating for his vulture capitalism.
Ummm.... have Toys R Us heard of demographics? They could have been watching carefully and responding to changes in birth rate statistics, etc etc. This could have led them to make some changes earlier on and maybe downsize or specialize (in certain types of toys), instead of having to go bankrupt.
The other issue they had was a rather poor online ordering system with very little data privacy, which did not evolve as well over the years as competitors like Target, Walmart or Amazon. Thus, I bet they lost a lot of potential online profits from people who could have shopped online at ToysRUS but instead shopped at one of the other stores. They are a good store, but unlike Target or Walmart they just didn't move with the times.
So millennials are not having kids because they can't afford to and they are to blame for that older generations can't sell crappy toys.