The fact that most of these pop-up style stores were slated to debut across countries in Asia might have been a factor. However, COVID-19 put a halt to Tru Kids’ progress, and they closed that operation completely in the beginning of 2020. So, revenue didn’t come from physical products. Tru Kids planned to rent out space inside the stores to independent toy retailers. These would be smaller versions of Toys “R” Us with toy demonstrations and other engagement features in the location. Tru Kids took over the Toys “R” Us brand and all of its intellectual property. In another ill-timed pivot, Toys “R” Us tried to resuscitate their physical presence in 2019. People just aren’t going to the mall to buy them. According to market data from NPD Group, the sale of toys rose by 16% in 2020. Mandatory quarantines are a godsend for toy retailers. In fact, the COVID-19 pandemic has spurred toy sales because parents are stuck at home with stir crazy children who need stimulation. The segment has continuously thrived since brick and mortar Toys “R” Us stores closed down. Both children and adults are still buying lots of toys. There’s no problem with the retail sale of toys. Related: 5 Reasons JCPenny Needs To Die! Are Kids Just Not Into Toys Anymore? In hindsight, it must seem pretty ridiculous to use your online platform to send consumers directly to your competition, but that’s exactly what Toys “R” Us did. Instead, they advertised and displayed products for other companies like Target, Walmart and Amazon. Toys “R” Us didn’t make direct e-commerce with consumers. By attempting to dominate the online search for toys, the company failed to sell actual toys. Their strategy was to try and own the overall topic platform of toys online. Toys “R” Us struggled to make the transition from physical stores to the online retail space. Instead, retailers boosted their online presence with e-commerce. These competitors didn’t dare open new brick and mortar stores to sell toys. Competitors leapt at the chance to fill the gap left by its absence.
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