Toys R Us can survive as stand-alone retail store, former CEO says
Toys R Us is staging a comeback and its former CEO told FOX Business the toy giant can survive as an individual retailer.
“Consumers want it. It’s a great place to take your kids,” Gerald Storch said Tuesday on "Varney & Co.” “The toy manufacturers want it. It’s a great place to showcase the toys.”
The once-giant toy seller is attempting a comeback by opening half a dozen stores in time for the holiday season. The new stores are said to be about a third of the size of traditional Toys R Us outlets.
Toys R Us filed for bankruptcy in 2017 after years of financial troubles, shutting down its stores in the U.S., U.K. and Australia.
According to the Toy Industry Association, the United States toy market is worth nearly $22 billion a year. Storch estimates Toys R Us could generate close to $100 million in sales at its six stores.
“It’s not what it used to be, but there is growth potential. It probably will never be as large as it used to be,” he said.
CLICK HERE TO GET THE FOX BUSINESS APP
Storch said Toys R Us has a long lasting tradition of creating an experience for kids and their families that will return consumers to its stores.
“It’s always been experiential and they’re talking about making it even more experiential. Someplace you can take your kids and spend some time in there,” he said. “So, certainly, that’s what [it's] all about at the end of the day.”