Toys R Us: Struggles in its domestic market

Toys 'R' Us (TRU) has long been seen as the go-to for parents, toddlers and infants for toys and games. However, in recent years the company has struggled in an increasingly competitive marketplace and this has been evident by fluctuating levels of revenue growth. This case study analyzes TRU's recent financial position and assesses the opportunities and threats facing the company.


Understand the reasons for Toys r Us recent struggles and how it is changing its operations in a bid to turn its performance around

Assess the company's best growth opportunities

Analyze the threats facing Toys r Us

Reasons to buy

How has Toys r Us performed in recent years and what has driven its results?

What strategies is Toys r Us adopting in a bid to boost revenue and profits?

What are the opportunities and threats facing Toys r Us?

Companies mentioned


Table of Contents




Toys 'r' us struggles in recent years

Toys 'R' Us: a brief history

Acquisitions and entering into partnership has helped establish the company position in the toys market

Toys 'R' Us struggles in its domestic market as well as some international markets

Growth opportunities for Toys 'R' US

Product diversification increases TRU's consumer base

TRU teams up with a number of designers to drive sales in the childrenswear and maternity wear market

Pop-up stores increase customer spending during holiday season

TRU expands in the growing Chinese market

TRU increases its online presence

Threats facing TRU

Growth in private label toys could damage revenues of traditional toy retailers such as TRU

Intensified competition from non-specialists and new entrants leads to price wars

The growing digital gaming market affects TRU revenues


TRU must find its way in a competitive marketplace and return the company to growth



Further Reading

Ask the analyst

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List of Tables

Table 1: Revenues split by geographical markets ($) (%)

Table 2: TRU revenues, net income and growth FY 2010-2016

List of Figures

Figure 1: Global toys and games market growth compared to TRU's revenues (2011-2016) (%)

Figure 2: Heidi Klum and the Kardashians clothing range

Figure 3: Kardashian clothing range

Figure 4: Supermarkets Wal-Mart, Asda, Sainsbury and Tesco

Figure 5: Year on year growth of TRU and competitors Amazon, Wal-Mart, 2010-2015 (%)


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