retail news in context, analysis with attitude

Bloomberg reports that Toys R Us plans “to close about 180 U.S. stores as part of a reorganization plan to emerge from its September bankruptcy.” The closures represent about 20 percent of its stores, and comes as “a response to years of lackluster results and an unsustainable $5 billion debt load. The closures will begin next month, with Babies “R” Us locations accounting for at least half.”

In addition to the closures, the company reportedly wants to “revamp the retailer’s loyalty program and pricing model to be more competitive.”
KC's View:
Hate to say it, but I cannot help but feel that this is just the beginning of what is going to be a long, painful process that is going to end with Toys R Us going the way of Borders, Circuit City, Linens N Things, EJ Korvette (yup, them again), and others of that ilk.