“I don’t want to grow up!” sang Toys “R” Us’ famous jingle from our TVs, year after year.
Unfortunately, that’s not how the world works, and neither kids nor retailers get to skip out on that reality.
Retailers don’t necessarily have to die, but plenty of them have been digging their own graves. The bankruptcy of Toys “R” Us wasn’t an accident or a surprise.
In a move one can justifiably call a suicide, the company choked itself to death with debt.
The demise of Toys “R” Us is a lesson for all retailers, and it’s a lesson for investors.
Here’s the truth about what pushed Toys “R” Us to the edge and how not growing up led to its bankruptcy…
Abercrombie & Fitch, American Apparel, CVS, JCPenney, Macy’s, and Sears are just some of the large retail brands forced to close stores this year. Earlier this week, Toys”R”Us announced its bankruptcy filing, and analysts predict 25% of all shopping malls will close within the next five years. As increasing numbers of people turn to some form of online shopping, it’s no surprise brick-and-mortar stores are suffering.
In his latest appearance on Varney & Co., Shah Gilani discusses the FOMC meeting, Amazon.Com Inc. (NASDAQ:AMZN), and the reasons behind the drastic down-turn in American retail. Amazon might be the figurehead for online shopping, but it’s not solely to blame and neither is online shopping in general. Shah details how mass production and overindulgence played key roles in this “ice age.”
Click now to watch…