As Toys R Us locations gear up for closure, the retailer is rolling out new markdowns at its stores. The retailer said in a Facebook post that discounts run from 50 percent off to 70 percent, with some exceptions, USA Today reported.
“The store closure’s timing and discounts will vary, as it depends on how quickly each location sells out of inventory,” Toys R Us spokesperson Amy von Walter told USA Today. “I don’t have timing on markdowns as the liquidators are leading this process, but I’d guess that would vary as well.”
Empty aisles and sections of stores are blocked with caution tape and other barriers when inventory does sell out. In addition, merchandise is also moved to the front of the retailer’s brick-and-mortar stores. In terms of closings, one store supervisor told USA Today that the closing date of his store is subject to change — and depends on how quickly all of the store’s merchandise is sold.
As of April, Toys R Us had over 700 remaining locations in the U.S., including those under the Babies R Us banner. If completed, the company’s liquidation would be among the largest in retail history since Sports Authority closed nearly 500 stores, The Wall Street Journal (WSJ) reported. Since a leveraged buyout, Toys R Us has been burdened with over $5 billion in debt. Competition from eCommerce retailers such as Amazon and discount stores such as Walmart hasn’t helped the company either.
Beyond the U.S., Toys R Us Chief Executive David Brandon had said the company may liquidate its operations in France, Spain, Poland and Australia. In addition, the company hoped to find a buyer for its Canadian business, which it planned to package with 200 stores in the U.S. “We’re putting a for-sale sign on everything,” Brandon told employees, the WSJ had reported. “Frankly, all anyone has to do is offer one dollar more.”
Toys R Us had approximately 1,600 stores globally, with about half of them in the U.S. when it filed for bankruptcy protection in September.