Toys”R”Us to Shut a Fifth of Its US Stores

Toys”R”Us announced yesterday that it will close approximately one-fifth its US stores over the next few months as the toy retailer chain attempts to recover from one of the most significant bankruptcies ever experienced by a specialty retailer. Toys”R”Us CEO David Brandon stated that the closing of approximately 180 U.S. stores will take place in February and continue until mid April. This move still requires court approval. The letter was posted on the company’s website. Toys”R”Us will co-brand several locations as Babies”R”Us.

Total Retail’s View: It was not surprising that Toys”R’Us would close its stores. To restructure $5 million of long-term debt, the retailer filed for bankruptcy protection before the 2017 holiday season. This cast doubts on the future of its 64,000 workers and 1,600 stores. Toys”R”Us has been under increasing pressure from other companies such as Wal-Mart and Target over the past few years. This is despite its efforts to improve customers’ online and in-store shopping experience, but it still has not met their needs. Some analysts believe Target will be the largest winner if Toys”R’Us closes U.S. locations. This is due to its proximity to the chain’s stores.

source https://www.mytotalretail.com/article/toysrus-to-shutter-a-fifth-of-its-u-s-stores/

Wal-Mart resigns from its policy of locking up specific beauty products

Wal-Mart has been sued by a California woman over the claims that it keeps products used mainly by African-Americans in a locked glass container. Essie Grundy, a Los Angeles reporter, said that she felt discriminated against and humiliated when she was forced to ask a Wal-Mart employee in Perris, Calif. to unlock her beauty supplies. According to KCBS, Grundy stated that she quickly realized that all of the African-American products were locked up under lock & key. Grundy spoke to a supervisor and learned that these products were locked up because of a directive from corporate headquarters. Grundy stated that she felt like a thief and was being treated in this way. Gloria Allred, a prominent attorney, has been hired by Grundy to represent her. She says that they are asking Wal-Mart for an apology, changing their policy, paying her fees and up to $4,000 of damages.

Total Retail’s View: Wal-Mart responded to Grundy’s complaint with a statement. It stated that although it doesn’t discriminate, the company will review Grundy’s complaint. The statement stated that “We are sensitive to this situation” and that it also understood, as other retailers, the need for additional security on certain products like electronics, automobiles, and personal care products. These determinations are made store-by-store using data that supports the need for increased security. Wal-Mart also stated that it serves more than 140 million customers each week, across all demographics. It is focused on satisfying their needs and providing the best possible shopping experience at every store. This case will be closely monitored in the coming months.

source https://www.mytotalretail.com/article/wal-mart-sued-over-policy-of-locking-up-specific-beauty-products/