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Trouble in Toytown

The future looks grim for Geoffrey the Giraffe and his friends at Toys “R” Us, the jaded toy retailer. Under attack from the mighty Wal-mart, with its philosophy of “stack ‘em high, sell ‘em cheap”, Toys “R” Us is struggling to compete. John Caserta reports

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Competition in the toy retail industry has grown increasingly fierce, as large-scale discount retailers such as Wal-mart have edged out traditional toy retailers through aggressive and competitive pricing campaigns. In 2003, KB Toys and FAO Schwartz buckled under the pressure and filed for bankruptcy, leaving Toys “R” Us—the former number one toy retailer in the US—to defend its share in a market

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