Today is a sad day for the retailer with the announcement of 26 of their 84 permanent (105 total) UK stores closing from Spring 2018, however, this announcement may ensure the brand can continue for many more years to come, as they invest time and money into these presumably more profitable remaining stores.
With Christmas accounting for around 40% off sales for the retailer announcing the closure of nearly 1/3 of stores just before the final push for Christmas will not have been an easy decision to make, however, the retailer has been loss-making for 7 out of the past 8 years in the UK, with more and more people moving to internet shopping where prices can be checked and cross-referenced in seconds we’re not surprised something had to change.
The important points (although this is always subject to change):
Steve Knights, of Toys ‘R’ Us UK, said:
“All of our stores across the UK remain open for business as normal through Christmas and well into the New Year. Customers can also continue to shop online and there will be no changes to our returns policies or gift cards across this period.
“Like many UK retailers in today’s market environment, we need to transform our business so that we have a platform that can better meet customers’ evolving needs.
“Our newer, smaller, more interactive stores are in the right shopping locations and are trading well, while our new website has generated significant growth in online and click-and-collect sales.
“But the warehouse style stores we opened in the 1980s and 1990s, while successful in the early days, are too big and expensive to run in the current retail environment. The business has been loss making in recent years and so we need to take strong and decisive action to accelerate the transformation.”