Case | HBS Case Collection | February 2003 (Revised December 2006)

Toys "R" Us (A)

by Michael G. Rukstad, Dennis A. Yao and Cate Reavis

Abstract

In 1992, Toys "R" Us, the pioneer of the "category killer" retail format, faced significant competitive threats from mass discounters and warehouse clubs and was losing market share. This case explores the dynamic sustainability of Toys "R" Us's retailing model, its competitive options, and the benefits and costs of leveraging market power.

Keywords: Risk Management; Competition; Supply and Industry; Power and Influence; Retail Industry; United States;

Citation:

Rukstad, Michael G., Dennis A. Yao, and Cate Reavis. Toys "R" Us (A). Harvard Business School Case 703-445, February 2003. (Revised December 2006.)