Business Wars Toys R US vs KB Toys: Christmas Carnage | 3
Nov 29, 2023
In 1999, the retail landscape shifts as the internet emerges, challenging traditional toy giants. Toys R Us struggles with online strategy, suffering a holiday setback. Meanwhile, KB Toys seizes the moment, negotiating a deal with Amazon that changes the game. The rivalry intensifies as both companies navigate exclusive products and aggressive competition from Walmart. Dive into the tumultuous toy wars where innovation and partnership will determine who thrives in a rapidly evolving marketplace.
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ToysRUs.com's Initial Strategy
- Bob Moog, head of ToysRUs.com, proposed undercutting all competitors, even Toys R Us stores, to gain online market share.
- Toys R Us executives rejected this, prioritizing physical stores, leading to Moog's departure.
Website Issues
- A dad tried purchasing toys from the Toys R Us website but faced errors and out-of-stock items.
- He successfully ordered from KB Kids, highlighting KB's superior online experience.
KB's Online Success
- KB Toys' online success, despite trailing eToys, drove a planned IPO for KBKids.com.
- This showcased the potential of online sales for smaller toy retailers.