Jan 30, 2021 12:35 AM EST
The COVID-19 pandemic has pushed another company to make a hard decision. Toys R Us has closed its only two remaining stores in the United States.
Toys R Us made the difficult decision as the consequence of all the hardships brought about by the coronavirus pandemic. This does not mean the company or the brand is no more. Instead, the company plans to shift its already limited resources to opening in new locations where there are likelier to have better shopper traffic. A spokesperson for the company told CNBC this himself.
"Consumer demand in the toy category and for Toys R Us remains strong and we will continue to invest in the channels where the customer wants to experience our brand," the spokesperson shared.
COVID-19 had a mixed impact on the toy industry. As parents and children are forced to stay at home, toy sales actually increased in 2020. In 2019, the rates increased by a total of 15%, amounting to $25.1 billion.
But the sales happened not on physical toy stores, but online.
"The industry's resiliency is very much underpinned by the reality that, in times of hardship, families look to toys to help keep their children engaged, active, and delighted," shared Juli Lennett, vice president and industry advisor of U.S. toys at the NPD Group, in a statement.
The NPD Group reported that as families turned to toys to make sure their kids can fare better with being at home at extended periods of time, the sales are happening online.
This means paying lease can be a waste.
Tru Kids, an entity that acquired Toys R Us' intellectual property when it liquired in 2018, opened two smaller-format stores in late 2019.
One of them is located at the Unibail-Rodamco-Westfield's Garden State Plaza mall in Paramus, New Jersey, while the other one is at Simon Property Group's The Galleria in Houston.
The Houston location was closed on Jan. 15, the spokesperson revealed, while the Paramus location followed suit, as reported by CNBC.
Representatives from URW and Simon have yet to comment on the said news.
Tru Kids is still running Toys R Us' website, which ultimately sends customers to Amazon when they want to complete a purchase. Tru Kids serves to market the toys and is the one still icensing the brand globally.
Many consumers have personally avoided shopping on physical stores, even if the strick lockdown measures were lifted. They stayed clear of brick-and-mortar stores during the pandemic because staying home is clearly the safer option, especially for their kids.
As a result, they resorted to buying more goods, including toys online. Naturally, mall-based retailers have suffered massively.
Based on the findnigs of one retail research firm, there might be at least 10,000 store closures to be announced by retailers in the U.S. in 2021.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
As the metaverse takes over more of our digital lives, the commoditization of all aspects of our virtual beings becomes more and more of a reality.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
Bitcoin and cryptocurrency in general guarantee some amazing profits if invested correctly.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Following the pandemic, natural calamities, and major employment shifts, a startling new study on the online news site News Nation shows that 1 in 4 Americans don't have an emergency fund.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.
Ease of access, freedom to choose in which to invest the money and lines of credit designed according to the needs of consumers, are some of the characteristics that have made consumer credit one of the most important financing products in the world’s market.