Last week, a small piece of nostalgia died for millions of people when Toys R Us filed for bankruptcy. The household name had once dominated the toy market, and even a few years ago the idea that it would collapse seemed unbelievable. Yet, that is the situation it is now in. But why did this happen? According to John Copestake, chief retail and consumer goods analyst at the Economist Intelligence Unit:
“There is room in physical retail for toy stores, as the queues outside Hamleys and Lego stores will testify, but success is now more likely to come from stores that reinvent themselves as destinations offering experiences or as niche outlets for hardcore collectors. The ‘pile them high’ big box approach is simply no longer relevant.”
In other words, Toys R US failed to keep up with the times. It is often said that the internet is killing the high street, but that’s not strictly true. The internet is forcing the high street to evolve. People no longer go out to shops with the same intention as they did ten years ago. Those that don’t evolve, like Toys R Us, die.
The administration at Toys R Us could have benefitted from learning something about modern management. If you learn one thing from Toys R Us’ mistake, make sure you keep up to date with the latest news and ideas about management. To help you out, we’re offering you 6 months of Practice Management membership for just £99 + VAT. That’s less than £17 a month! For this low price, you’ll get one new webinar a month plus our entire back catalogue of Practice Management webinars, and other perks too. Take out a Practice Management membership today and make sure you don’t become the next Toys R Us.
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