December 27, 2004

Toys R Us Losing the Battle

The New York Times reports that Toys R Us may shut down its toy division or sell it off to focus on its Babies R Us stores. Toys R Us used to be the dominant toys category killer in the 1990s with a peak market share of 20%. Now Walmart is at 20%, Target is at 18%, and Toys R Us is rapidly declining at 17%. Analyst are expecting the company to close down hundreds of stores in early in 2005.