Parcel Hero report predicts ‘high street decline’ following Toys R Us debt woes

Following the news that Toys R Us may be seeking a bankruptcy claim to manage its $400 million debt, ParcelHero e-commerce delivery expert David Jinks has released a report predicting the death of the high street by the year 2030.

"Toys R Us same-store sales have fallen for three consecutive quarters, and its most recent results were down 4.1 per cent," said Jinks. "That’s because Toys R Us is in direct competition with online toy sales from the likes of Amazon; and when it comes to the toy market, Amazon isn’t playing around."

"Even Toys R Us can’t be immune from the collapse of the High Street or shopping mall. In the snakes and ladders world of retail UK toy shops have been one of the hardest-hit store types of the internet era," he continued. "Local stores from the huge, award-winning Dominos in Leicester, to Junners of Elgin (116 years old at its death in 2015); and smaller stores such as Kidzone in Bromley, the Cambridge Toy Shop and Hydes in Chorley, have all closed in the last two years."

The news of Toys R Us’ debt woes comes after the retailer revealed its results for the first quarter of fiscal 2017, citing a decline in profits. While the decline has been shared by some other retailers, The Entertainer has reported a six per cent upswing in profits for the financial year, in contrast to Jink’s claims.

"Toys R Us says it is ‘evaluating a range of alternatives to address our 2018 debt maturities’; so filing for bankruptcy protection is just one of several options on the table for the company." concluded David.

"There are a number of ways Toys R Us can restructure and survive; but back in 2006 most pundits thought Amazon would be the big loser from the collapse of the Toys R Us-Amazon tie-up. The speed of collapse of the High Street toy market shows the rough and tumble of retail is far from child’s play."

About Robert Hutchins

Robert Hutchins is the editor of ToyNews and its sister title, Licensing.biz. He has worked his way from Staff Writer to Editor across the two titles, having spent almost eight years with both and what now seems like a lifetime surrounded by toys. You can contact him by emailing robert.hutchins@biz-media.co.uk or calling him on 0203 143 8780 You can even follow him on Twitter @RobGHutchins if ranting is your thing...

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