Toys ‘R' Us to disappear
So, it’s official. The question now arises about winners and losers. 30,000 people will lose their jobs in the US alone and more job losses will occur in other markets, such as the UK (where Toys ‘R Us had 100 stores, of which 25 have already been shut). Customers will lose too, as will toy suppliers. However, department stores such as Kmart, Big W and Target, as well as specialty toy retailers, will see a spike in sales, but not until Toys ‘R Us liquidate their stock through a fire sale. According to AFR, the Australian arm of the business lost over $7 million on sales around $275 million. Amazon and Walmart have been blamed for the toy giant's demise, but we think that it all started with the leveraged buyout 12 years ago. Such financial tricks are hardly ever good for business.