New stories are emerging from those who have worked for Toys R’ Us in the past about the arrogance of the store throughout the years. They spoke with CNBC and others on the conditions of anonymity, but they were confirmed to be former employees and in some cases even former executives of Toys R’ Us. What they had to tell the media is that the story you are hearing about the demise of Toys R’ Us is not all that there is to it.
Many are putting the blame on the decline of Toys R’ Us on competition from Amazon. They say that having online retailers that sell many of the same products that one could find at their Toys R’ Us store is something that caused the toy retailer to simply fall out of favor. That is just part of the story though. Having Amazon in its backyard so to speak certainly did not help Toys R’ Us, but it had a lot more going against it than just that.
The truth about how Toys R’ Us fell apart has to do with how it viewed itself in the world of toys and how it viewed themselves and their competition. That is to say that they definitely thought of themselves as the king of the jungle while not giving their competition anywhere close to the same level of respect.
Toys R’ Us did not do all that they should have to continue to build upon the loyalty of their customers at the height of their power. While they were focused on building out new stores all over the country, they did not properly fund those stores either. Finally, they let the trust that they had built up with toy makers fall apart as well. That last part perhaps more than any of the rest of it was the death nail in the coffin of Toys R’ Us for the modern world.
Many people will still continue to share the story of Toys R’ Us as the failure of a company to adapt to a world in which online competition became a thing, but that will never be what it was all about. They were actually a successful business that allowed their success to go to their heads. When that happened, they were no longer the successful business that they had been before. Thus, we can all stand to learn a lesson or two from what they did and failed to do to maintain their dominance in the industry.