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The closure of about 180 U.S. stores will begin in early
February and continue until mid-April, Chief Executive David
Brandon said in a letter on its website. http://bit.ly/2n5O1mR
Brandon, who joined as CEO in 2015 after spearheading a
turnaround at Domino's Pizza Inc <DPZ.N>, acknowledged gaps in
customer experience during the vital holiday season but pledged
to focus on improving shopping experience, both at its stores
and online.
The Wayne, New Jersey-based company, contesting growing
competition from regional independent toy retailers and online
giant Amazon.com <AMZN.O>, will also roll out deep discounts and
revamp its loyalty program to lure more shoppers.
The company filed for bankruptcy protection just ahead of the
2017 holiday season in the United States and Canada to
restructure $5 billion of long-term debt, casting doubts over
the future of its 64,000 employees and nearly 1,600 stores.
Toys "R" Us, which also operates the infant- and toddler-focused
Babies "R" Us chain, has set aside more than $400 million out of
its $3.1 billion in bankruptcy loans for sprucing up stores over
the next three years with more experiences and better-paid
staff.
The company said it plans to remodel a number of locations by
converting them into co-branded Toys R Us and Babies R Us
stores, while also investing in websites.
All 83 Toys "R" Us stores in Canada will remain open, said
president of the Canadian unit, Melanie Teed-Murch, in a letter
to customers. http://bit.ly/2n7ztCp
As Toys "R" Us aims to exit bankruptcy in 2018, its efforts to
reinvent its stores will shape how other retailers look to
experiential shopping to tackle e-commerce.
(Reporting by Ismail Shakil and Subrat Patnaik in Bengaluru;
Editing by Gopakumar Warrier)
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