Toys 'R' Us Canada Continues Rapid Store Closures, Leaving Just 22 Locations Nationwide
The iconic Canadian toy retailer Toys "R" Us has dramatically reduced its physical presence across the country, closing 19 additional stores in just two months. This latest wave of closures leaves the chain with a mere 22 operational locations nationwide, a stark contrast to its former network of 103 stores.
Western Canada Particularly Hard Hit by Recent Closures
According to an updated analysis by the Edmonton Journal and Financial Post, the recent closures have left Western Canada with only five remaining Toys "R" Us locations. The chain's last store in British Columbia, located in Langley, closed unexpectedly this month with a notice citing nearly $100,000 in unpaid bills posted on its front door.
The retailer has now closed every store in British Columbia and Calgary over the past year, leaving Western Canada with just a handful of locations in Lethbridge, Edmonton, Saskatoon, and Regina. This represents a significant contraction for a brand that once dominated the Canadian toy retail landscape.
Financial Strain and Operational Challenges Evident
Moritz Steinbauer, a senior vice-president at credit-rating agency DBRS Morningstar, expressed concern about the chain's trajectory. "The history that we've already gone through with Toys 'R' Us, and the amount of closures are not pointing toward a retailer that is in a growth mode," Steinbauer noted.
Additional signs of operational strain include:
- The Toys "R" Us website has been under maintenance for multiple days, preventing online purchases
- Retail experts note that retailers typically don't take their homepage down for extended periods for routine improvements
- The company and its owner, Doug Putman, have not responded to requests for comment about the closures
Competitive Pressures from Online and Big-Box Retailers
The toy retail industry has become increasingly competitive, with Amazon.com Inc. and Walmart Inc. creating significant challenges for traditional specialty retailers. These competitors offer:
- Wider selections of specialty toys
- Lower price points
- Convenient delivery options
- Strong online shopping experiences
These market pressures appear to be contributing to the ongoing struggles at Toys "R" Us Canada. Over the past year alone, the chain has closed 57 locations across the country, representing more than half of its remaining stores at the beginning of that period.
Future Uncertain for Remaining Locations
While retailers often close underperforming stores as part of normal business optimization, the scale and pace of Toys "R" Us Canada's closures suggest deeper challenges. Steinbauer emphasized that while businesses continuously right-size their operations, "the amount of closures are not pointing toward a retailer that is in a growth mode."
The future of the remaining 22 stores remains uncertain as the company navigates an increasingly difficult retail environment. The combination of financial strain, operational challenges, and intense competition creates significant headwinds for the once-dominant toy retailer's Canadian operations.
