Toys R Us is officially set to close down around Australia
One of Australia's most iconic toy stores will be permanently closing its doors...
In sad retail news, Toys R Us and Babies R Us have officially announced that they will be closing down Australia wide. After the administrators failed to secure a buyer for the 44 retail chain stores, Toys R Us announced it had gone into voluntary administration just last May.
When the brand announced the news of voluntary administration they insisted that stores would remain open and continue to run while administrators aimed to explore more options. Unfortunately, that hasn't worked out.
The fall of this toy empire comes as shoppers prefer to purchase toys at department stores, online, or at smaller stores that offered a better experience, according to Steven Kulmar from the consultancy Retail Oasis.
This unfortunate shut down of the 44 stores will leave 700 Australians out of a job and the 10% of the $2 billion toy market up for grabs. Stores will begin closing down in the next few weeks and the stock will be liquidated through sales during that time.
You can still shop in-store at selected Toys R Us stores and the brand is offering 30% off storewide in order to get rid of most products. You can find a store near you by visiting the site which is now essentially just a store directory site now.
Due to this, you can no longer make online orders on the Toys R Us or Babies R Us site but you can still use a gift card till 5 July. However, if you want to use a gift card you must spend "an additional equivalent amount", McGrathNicol said. Basically, if you have a $50 gift card, you need to spend $50 in order to claim it. Lay-bys will also be honoured until 5 July, "provided the outstanding balance is paid and the stock is available".
They sadly aren't the first store to succumb to the competitive shopping market with Oroton and Surfstitch both claiming voluntary administration.
Unfortunately, Toys R Us failed to adapt to a growing and predominantly online market. Many parents and shoppers now choose to purchase toys from department stores like Kmart and Target while shopping for other necessities. While the demand for toys is still high, Australians shop online or in department stores more frequently and being a singular shop just for toys obviously was not enough to compete.