Sluggish sales and intense promotional activity have been cited as the reasons behind Toys R Us’ decrease in end of year sales.
The retailer has reported a decrease of $8 million in its financial results for the full year and fourth quarter of 2016, totalling at $792 million for the full year.
Continued weakness in the entertainment and baby categories for the retailer has been blamed, alongside the current toughness of the retail environment.
For the retail giant, consolidated sales came in at $11,540 million, a decrease of £262 million compared to the prior year. The decline has been attributed to US store closures, including the loss of its times Square and FAO Schwartz flagship stores.
“Despite a strong start to the holidays, in the weeks following Black Friday we faced a combination of sluggish sales and intense promotional activity,” said Dave Brandon, chairman and chief executive officer, Toys R Us.
“The widely recognised tough retail environment this holiday and continued weakness in the entertainment and baby categories contributed to the erosion of out top-line and an overall disappointing year.
“However, with 2017 already well underway, we remain focused on improving in every area of our business. We have a number of important initiatives planned this year, including the launch of our new webstore and the expansion of our joint venture with Fung retailing in Asia, and some exciting plans with several of our vendor partners to bring innovation and excitement to our customers.”