The 6 Reasons Why Toys R Us Failed: How to Avoid the Same Fate

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In this blog post, we will explore six reasons why Toys R Us failed, and how you can avoid making the same mistakes.

In this blog post, we will explore six reasons why Toys R Us failed, and how you can avoid making the same mistakes.In this blog post, we will explore six reasons why Toys R Us failed, and how you can avoid making the same mistakes.

The Toys R Us story is a cautionary tale for business owners everywhere. Just because you have been successful in the past doesn't mean you can rest on your laurels - you have to continually adapt and innovate to stay ahead of the competition.

In this blog post, we will explore six reasons why Toys R Us failed, and how you can avoid making the same mistakes.

Reason #1: Failure to Adapt and Innovate

Toys R Us was a victim of its own success. It became so big and dominant in the toy market that it failed to adapt when new competitors, like Amazon, entered the scene. Toys R Us didn't innovate to keep up with changing consumer trends - they just relied on their tried and tested formula.

For example, in the age of e-commerce and social media, Toys R Us failed to create a strong online presence or embrace customer communities. This allowed Amazon and other competitors to take advantage of the growing trend toward online shopping.

Toys R Us stopped changing and growing. They just did what they always did and that didn't work anymore because of new competition. If you want to make sure your business doesn't fail, you have to change and grow with the times. You also need to be where people are shopping - online and in person.


Reason #2: Competing on Price Alone

Toys R Us also failed to compete on anything other than price. They didn't focus on creating a unique shopping experience or developing innovative products.

This strategy can be successful in certain markets, but it's not sustainable in the long run. In the age of Amazon, customers are looking for more than just low prices - they want a great shopping experience, value-added services, and innovative products.

Pricing is important, but it's not the only thing that customers are looking for. If you want to be successful in today's market, you need to offer a complete package - great products, an enjoyable shopping experience, and low prices.

Toys R Us is a company that had been successful in the past but then failed. They were not successful anymore for a few reasons, including that they tried to compete with only low prices and didn't change when new people came into the market. You need to be good at changing so you don't fail either.


Reason #3: The nefarious Amazon Deal

In 2000, Toys R Us made a deal with Amazon that allowed the online retailer to sell toys on its site. This was a huge mistake, as it allowed Amazon to become a major player in the toy market.

Toys R Us should have been focusing on developing its own online presence,  but instead, it relied on Amazon to do that for them. This was a major strategic error, and it cost Toys R Us dearly.

If you want to make sure your business doesn't fail, you need to be in control of your own destiny - don't rely on others to help you succeed. Focus on developing your own online presence, and make sure your business is strong enough to compete with the big players.


Reason #4: Failure to Embrace the Community in the Age of E-Commerce and Social Media

Toys R Us also failed to embrace the community in the age of e-commerce and social media. In this digital age, customers want to feel engaged and connected with the brands they love. Toys R Us failed to create a strong online presence or foster customer communities.

This allowed Amazon and other competitors to take advantage of the growing trend toward online shopping. Toys R Us stopped changing and growing. They just did what they always did and that didn't work anymore because of new competition. If you want to make sure your business doesn't fail, you have to change and grow with the times. You also need to be where people are shopping - online and in person.


Reason #5: From The Ultimate Experience to No Experience

Toys are meant to be fun, right?  Well, Toys R Us forgot that and stopped providing a fun shopping experience.

In the past, Toys R Us was known for its exciting stores and its focus on customer service. However, over time, the company lost its focus and stopped providing a great customer experience.

Customer experience is more than ever a key differentiator in the age of e-commerce. If you want to be successful, you need to focus on creating a great experience for your customers - in your store and online.

Toys R Us failed to do this, and it cost them dearly. If you want to make sure your business doesn't suffer the same fate, make sure you focus on providing a great customer experience.

Think about Disney, Hasbro, Mattel, and Lego. They all focus on creating a great customer experience. That's why they're successful.


Reason #6: Management Myopia

Lastly, Toys R Us failed because of management myopia - the company was focused on short-term gains rather than long-term success.

This led to poor decisions, such as the Amazon deal, that cost the company in the long run.

Having a long-term focus is key to success in any business. If you're always focused on the short term, you'll make decisions that hurt your business in the long run.

Make sure your management team is focused on the long term, and make sure they're making decisions that will help your business succeed over the long haul.


In conclusion, Toys R Us failed because they didn't change, they competed on price alone, they were reliant on Amazon, they failed to embrace the community, their customer experience was poor, and their focus was short-term. If you want to make sure your business doesn't suffer the same fate as Toys R Us, make sure you focus on innovation, culture, the community, customer experience, and the long term.

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