Holiday sales this past year ballooned, but those riches didn't extend to Toys R Us. The bankrupt toy store missed significantly on every number that mattered, sources say, likely forcing the retailer to renegotiate key lending terms.
Sales were down more than hoped as was
traffic and the amount of toys in stock it got out the door. Meanwhile,
its profits were squeezed as Amazon and big-box retailers Target and Walmart
slashed prices to reel in customers. For these retailers, toys could
act as bait, with the hope that once shoppers came for the toys they
would also purchase other items with higher profit margins. Toys R Us
doesn't have any such buffer.. . . more