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February 28, 2018updated 27 Jan 2022 1:56pm

Toys R Us collapse is not just due to its failure to compete with Amazon

By GlobalData Retail

While the demise of Toys R Us in the UK has focused on how it was killed by the internet, data shows that the rise of local rival Smyths caused even more damage than Amazon.

The internet did take away Toys R Us’ main unique selling point, which was having such a wide range (‘everything under one roof’), but its failure to react in terms of the shopping experience, pricing and its own website is in stark contrast to the more imaginative reaction of Smyths, and to a lesser extent The Entertainer.

Without a deal in sight, more closures are imminent.

But it won’t be Amazon that benefits the most. According to a recent GlobalData’s survey, frequent Toys R Us shoppers are more likely to shop at market leader Argos and Smyths.

Verdict deals analysis methodology

This analysis considers only announced and completed artificial intelligence deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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