Liquidating a retail store
After years of underinvestment, the toy retailer has a long way to go to close the gap with rivals and successfully reposition itself.The misfires over the holidays are one more sign that the retailer still doesn't have the ability or wherewithal to fix its retail problems.The fulfillment issues have long been a problem for Toys R Us, calling into question whether the company's underlying IT infrastructure was ready for the omnichannel push the company made with a website re-launch and marketing ahead of the holiday season, according to the employees who spoke with Retail Dive.Those weren't Toys R Us' only problems during the holiday season, either.The Journal also reported that Toys R Us could lay off a "significant portion" of its corporate staff.
The retailer typically responded to posts with publicly visible offers to fix the reported issue and requests that complainants contact the company via private message.
reported in January that employees at the retailer's Wayne, New Jersey-based headquarters were Philip Emma, a Debtwire retail analyst, used court filings and certain financial assumptions to estimate Toys R Us' North American net sales fell more than 10% in the fourth quarter, and gross margin was down more than 30%, according to a report emailed to Retail Dive.
Moreover, internal figures provided to Retail Dive and confirmed by a high-level employee showed that fourth quarter sales, as of early January, were down more than 12% in both the Toys R Us and Babies R Us units.
The fulfillment issues are an old pattern for the retailer, which has for years under invested in the technological infrastructure to support omnichannel efforts, according to current and former employees who spoke with Retail Dive.
To be sure, all retailers have trouble spots, and online complaints are famously biased toward the extremes of customer experience, often negative.