Most people were surprised when the iconic retailer, that many of us grew up with, officially declared it would be closing its doors forever. When the announcement was made there were plenty of theories about how this could happen to such a beloved brand like Toys “Я” Us. Everything from growing competition to Amazon to the company’s management of finances were reported as possible causes.
As Toys “Я” Us looks to finalize the closure of all its U.S. locations this week, we decided to examine the shopping behaviors of its customers during the past year to gain more insight into what might have happened.
Here are a few highlights:
- The percentage of people who traveled over 50 miles to visit Toys “Я” Us noticeably dropped over the past year creating a shrink in trade area.
- Other key behavioral signals uncovered a reduction in the average household income of Toys “Я” Us shoppers.
- Toys “Я” Us may not have been able to reclaim the growing number of customers who increased their visitation to Target and Walmart which extended beyond the holidays.
In addition to Target and Walmart, there is a notable cross section of brands that carry some level of toys that are in a good position to attract former Toys “Я” Us shoppers.
Find out which other brands and industries are benefiting from the closures by downloading the full Toys “Я” Us Insights Brief.