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Toys 'R' Us might be dying, but physical retail isn't

from Harvard Business Review

The recent bankruptcy filing at Toys "R" Us has roiled the toy industry. Yet the struggles at the company are not new. The firm was taken private in a $6.6 billion leveraged private equity buyout in 2005, with the aim of turning the chain around, but the resulting debt has proved to be unserviceable. The news is part of a larger trend of closings that some are calling the retail apocalypse. The rise of e-commerce, combined with a shift in consumer preference toward dining out over shopping and with years of overbuilding, has made for distinctly unattractive economics in traditional retail. more


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