retail news in context, analysis with attitude

The New York Post reports that Toys R Us is planning its return to the bricks-and-mortar retail arena, albeit with much smaller stores than it used to operate.

Here’s how the Post reports the development:

“Tru Kids Brands, a licensing firm formed last year by creditors following the toy chain’s September 2017 bankruptcy filing, plans to open a handful of US stores in time for the holidays that will span about 10,000 square feet each … That’s downsized sharply from the 600 stores that were shuttered for good last spring, which had typically spanned 20,000 to 50,000 square feet.”

The story notes that “While Toys R Us disappeared from the American retail landscape, the brand is licensed to more than 900 stores in Asia and Europe, which generated sales of more than $3 billion for Tru Kids last year. In February, Tru Kids said it will open 70 more stores overseas this year.”
KC's View:
The question I’d ask is, was it size that was Toys R Us’s biggest problem?

I don’t think so. I think it may have been some combination of irrelevance and indifference, with a side of bloat. Which are the real issues the new owners have to address, in my not-so-humble opinion.