How a poor digital strategy helped bankrupt Toys R Us

As the iconic toy retailer falters in the online-shopping age, here are key lessons to draw from its lagging omnichannel presence.

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In the case of Toys R Us, the blame lies largely with a sluggish transition to e-commerce.

The chain is set to file for bankruptcy as early as this week. It will continue to operate, keeping stores open during its reorganization.

Experts say the company’s failure to focus on its online presence led to its downfall.

“Toys R Us has lost out in the digital space,” says Neil Saunders, managing director of GlobalData Retail. “Although recent digital investments have been made, the website and general e-commerce proposition are still below par.”

What can digital marketing pros take away from this steady decline? Here are lessons from the retailer’s mistakes:

You must always mind the competition. Brands such as Amazon, Walmart and Target all have a robust e-commerce presence and have made their sites easy for toy shoppers to navigate. By the time Toys R Us had updated its site this summer, those major competitors had left it in the dust.

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