WEB Notes: Everything is changing, everything including retail and how it functions. In the world of online retailers with few, but massive shipping centers brick and mortar stores will have a tough time competing. This is yet another consolidation we are seeing.
Toys “R” Us Inc. plans to shut at least 26 U.K. stores as the retailer goes through bankruptcy proceedings in the U.S.
The closures, starting in spring 2018, will pare rents on warehouse-size stores and let the company focus on better-performing small shops and online operations, according to an emailed statement on Monday. The U.K. arm will pursue a Company Voluntary Arrangement, a type of court-led insolvency proceeding.
Warehouse stores “are too big and expensive to run in the current retail environment,” U.K. Managing Director Steve Knights said in the statement. “The business has been loss-making in recent years and so we need to take strong and decisive action to accelerate the transformation.”