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Toys “R” Us Changes Things Up, Tries To Keep Strong Sales Going


The US toy industry had a banner year in 2015, and Toys “R” Us is working to sustain that momentum by reinventing itself in the age of e-commerce and increased competition from discount department stores.

The toy sector pulled in $19.8B in sales last year, according to The NPD Group’s Retail Tracking Service, National Real Estate Investor reports. That’s a 7% increase in sales from the previous year.

Toys “R” Us enjoyed its share of the growth but has since fallen behind, reporting underwhelming same-store sales gains in 2016. In response, the retailer is planning to cut store sizes by half, and is focusing on engaging customers through special services and entertainment. One of the retailer's largest properties in New York's Time Square, a 160k SF space, is being converted into a Gap and Old Navy location, for example. [NREI]