Why Amazon is still such a threat to Toys R Us, in one chart

Here’s what it means to be the largest specialty toy and baby goods retailer in the US in 2017: 866 stores nationwide, Chapter 11 bankruptcy, and getting dominated online by Amazon.

According to data from Ecommercedb.com, Amazon had the lion’s share of baby and toy products sold online in the US, with $US2.16 billion in sales in 2016. Walmart, the largest toy store in the country, claimed the second spot online with nearly $US1.3 billion. Toys R Us, which filed for bankruptcy Monday, had a relatively meager $US912 million in online sales in 2016.

Ecommerce sales are increasingly part of a healthy retail strategy, and most big-box chains are investing in infrastructure and logistics to better compete with Amazon.

Toys R Us, burdened by loan payments from its leveraged buyout in 2005, was not able to make such investments, which ultimately led to its position behind its rivals today.

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