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Toys "R" Us Shutters More Stores
Kmart Layoffs Date: 1/11/2006 |
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Toy chain Toys "R" Us has plans to shutter or reconfigure 87 stores across the country. Twelve of the stores will be turned into Babies "R" Us outlets, but 75 of the affected outlets will be closed resulting in the elimination of about 3,000 jobs. Most of the stores will be closed by spring. The move by the Wayne, New Jersey-based TRU toy chain, which used to be the nation's number one toy retailer, is a effort to further streamline its operations in the face of stiff competition from Wal-Mart, Target and other discounters. While toy discounting did not reach 2003 levels during the past holiday season, price-cutting (see "Wal-Mart Fires Opening Salvo in Holiday Price War") and a lackluster Christmas for most retail segments (only top-tier retailers like Neiman Marcus really prospered) put additional pressure on Toys "R" Us. In July of 2005 a group of investors completed the purchase of Toys "R" Us for over $6 billion. Toys "R" Us is fighting back against increasing price competition by endeavoring to obtain as many "exclusive" products as possible and by shuttering its weakest stores. As of the middle of last year Toys "R" Us had 681 stores in the U.S. and 601 stores abroad. Another troubled retail giant, Kmart, announced that it would be cutting an unspecified number of jobs at some of its 1,400 locations across the country. |
| Source: ICv2 |
