Toys “R” Us has seen a 15% decline in sales this holiday season compared to where they were last year, which includes big toy makers Hasbro and Mattel have also been struggling as well. Back in September, Toys “R” Us filed for Bankruptcy protection owing billions of dollars that they cannot pay back. This holiday season, shoppers have been weary of supporting them, despite sales including 15% off coupons on one item in the store, BOGO offers, and more discounts to try to bring in shoppers. With sales declining, Toys “R” Us is considering closing at least 100 stores, with the potential of closing up to 200 stores. With this news, both Hasbro and Mattel have also seen their stocks drop.
Toys “R” Us Inc., which filed for bankruptcy in September, is considering closing at least 100 U.S. stores in the face of weak holiday sales, according to people with knowledge of the situation.
U.S. sales have declined about 15 percent this Christmas-shopping season from a year earlier, according to people recently briefed on the matter, who asked not to be identified because the information isn’t public. The number of closed stores could reach approximately 200, one of the people said, but no decision has been made.
Source: Bloomberg