Toys”R”Us has announced that it has entered into an agreement with Mirakl to develop its own online marketplace for its Toys”R”Us® and Babies”R”Us® businesses in the United States and Canada. The platform, set to launch in 2018, will enable Toys”R”Us to increase its product selection and decrease time to market for new merchandise, as part of the company’s commitment to serve its customers whenever, wherever and however they want to shop.
Lance Wills, TRU Global Chief Technology Officer says of the mood: “As the leading toy and baby retailer, customers expect us to have the latest and greatest assortment of products available. The marketplace model provides the opportunity to accomplish just that. “We look forward to working with Mirakl, and its experienced team, to bring this user-friendly shopping option to our customers.” Obviously they already sell goods online but by launching a market for toys and baby supplies that will perhaps open up a new revenue screen for the company as it faces testing times.
It is a bold move, needless to say, considering that only last week the company filed for bankruptcy facing diminishing sales and significant losses. To the 3 months ending July 29, Toys R Us saw sales of $2.17bn, compared to $2.28bn during the same time last year. The net loss during the quarter losses were $166m, compared to a small $95m loss during the same period in 2017.
Part of the problem was identified as online competition against a major international bricks and mortar player. there are 885 Toys”R”Us and Babies”R”Us stores in the United States, Puerto Rico and Guam and also more than 810 international stores and over 255 licensed stores in 38 countries around the world.
What’s not clear is whether the marketplace will focus purely on new goods sold by thord parties or whether it could also be an outlet for second hand and vintage toys.
