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February 28, 2018

Toys R Us collapse due to its failure to compete with Smyths more than Amazon

While the narrative about the sad demise of Toys R Us focuses on how it was killed by the internet, data shows that the rise of multichannel player Smyths caused even more damage than Amazon.

By GlobalData Retail

While the narrative about the sad demise of Toys R Us focuses on how it was killed by the internet, data shows that the rise of multichannel player Smyths caused even more damage than Amazon.

The internet did take away Toys R Us’s main USP, 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 GlobalData’s How Britain Shops survey, frequent Toys R Us shoppers are more likely to shop at market leader Argos and Smyths.