Why Did Toys ‘R’ Us Fail?

retail amazon

It was not the market dynamics that took these companies under, it was the fact that their owners took on so much debt that it positioned them to only be successful if all the market dynamics went their way.  They decided to purchase a Formula One race car and forgot they have to dodge potholes on I-94 in Chicago to and from work. And when they fail the world wonders and laments the loss of these retailers and make it sound like this is an overall retail issue.  It’s not.

Source: www.ihlservices.com

Judging from the usual apocalytic headlines it is pretty easy to assume Retail has been officially terminated by a mobile phone and Amazon.  But if you look at the numbers for retail it shows a $5 Trillion market is growing at 5.4% year to year. This is bad news?