Strengths And Weaknesses Of Toys “r” Us In Canadian Market

Toys “R” US has many strengths that are specific to their stores, as they have transitioned to a solely Canadian corporation. They also own Babies “R” Us, which brings in a large profit for them. With both stores, it can attract children from a very large range of ages. Their biggest strength can be attributed to their marketing towards kids, including their new interactive play areas and all types of toys for every type of child. Kids know that Toys “R” Us will have any toy that they are looking for and there are few toy stores as well known as them.

Toys “R” Us also has a strong online presence including their website and app, which allows for customers to be connected and make purchases anywhere and anytime. A strong online presence is essential to compete with other toy retailers. They also have very large stores with large shelf spaces, that allows for them to be able to sell many different types of products. This also allows for them to have a wider variety of toys than their competitors, which are typically department stores.

Toys “R” Us has weaknesses that come with being a toy store. Toy retailers have to deal with a very competitive market, including competition from Wal-Mart, Target, and KB Toys. It can be hard to differentiate against other stores. Along with any other retailers, seasonal sales are essential to their profits. Toys “R” Us is dependent on their Christmas sales, as toys are a very popular gift, but this requires sales to price differentiate from their competitors. Their greatest weaknesses come from the market they are competing in.

Toys “R” Us becoming a Canadian retailer has brought many new opportunities to the company. A recent opportunity they partake in, is that they work with charities including Starlight Children’s Foundation, which they host an event which allows for sick children to be able to fill their carts with toys within three minutes. This is a new growing opportunity because it attracts many customers because they like to buy from corporations that they feel are giving back and using their money to help the community.

Another opportunity is their mobile app and online presence, which they could create platforms for children to learn about new toys and advertise to further markets. Taking advantage of their online presence could be very beneficial because consumers from all over Canada can access their website. The interactive play areas for children is also another very exciting opportunity because many children could want to come to Toys “R” Us over their competitors for this feature. They will be able to try new toys and potentially buy more products because they are able to build an attachment to the toys before purchasing. Toys “R” Us’ transition to a solely Canadian corporation brings many opportunities.

There are some threats that Toys “R” Us is facing as they are working in very competitive retail market. There are other toy stores that are selling the same products, so they must find ways to beat their competitors at marketing. The toy producers provide to many retailers so it requires Toys “R” Us to beat their competitors in price, range, or availability. Also the change in culture to a very technological dominant society could have implications for this company. Children may not be wanting toys as much in this generation because they are starting to use technology much more. Although this is a threat, it could also be an opportunity for Toys “R” Us as they could create technologies exclusively for children.