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."