IHL Commentary Why Toys R Us failed
(No official announcement made, but vendors not being paid and gift cards not being accepted) One of the frustrations in pushing back against the false Retail Apocalypse narrative are situations like Toys ‘R’ Us that people will point to and say – what about them? It’s pretty easy to find stories that fuel the
Source: www.ihlservices.com
It was not the market dynamics that took these companies under, it was the fact that their owners took on so much debt that it positioned them to only be successful if all the market dynamics went their way. They decided to purchase a Formula One race car and forgot they have to dodge potholes on I-94 in Chicago to and from work. And when they fail the world wonders and laments the loss of these retailers and make it sound like this is an overall retail issue. It’s not.