Toys R Us was forced to shut down its only two stores barely a year after they opened. The two stores, located in New Jersey and Texas, opened in 2019, one year after the company was purchased by Tru Kids Inc. while in bankruptcy.
The stores opened ahead of Black Friday and were meant to be more than just a toy store. They were much smaller and featured hands-on experiences for kids and their parents. Tru Kids partnered with retail service startup B8ta to create interactive areas where kids could play with the toys.
According to CNBC, toy sales surged 16% to $25.11 billion last year. While that has been great for online businesses, brick-and-mortar stores have seen their sales decline due to the coronavirus pandemic.
Tru Kids Inc. cited the pandemic as the reason for the closures and said it will continue to invest in the Toys R Us brand.
“As a result of Covid, we made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic,” Tru Kids said in a statement. “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.”
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