Toys ‘R' Us blames millennials for company's collapse
Those born from 1981 to 1996 are being blamed in part for the collapse of Toys R Us. The retail giant closing more than 700 US stores says that declining birth rates are a threat to sales, Business Insider reports.
Toys R Us wrote in its 2017 annual filing that the declining US birth rate could be hurting sales:
"Most of our end-customers are newborns and children and, as a result, our revenues are dependent on the birth rates in countries where we operate," the filing said. "In recent years, many countries' birth rates have dropped or stagnated as their population ages, and education and income levels increase. A continued and significant decline in the number of newborns and children in these countries could have a material adverse effect on our operating results."
Millennials are more racially diverse, more college-educated and marry later than previous generations. Also, women from this group delay parenthood or aren't having kiddos at all.
Fertility hit a record low in 2016.
YOU SHOULD KNOW:
- Toys R Us will close or sell each of its more than 700 locations in the US.
- In the company's most recent annual filing, it cited declining birth rates as a threat to sales. Births have decreased rapidly since 2008 in the US, especially among millennial women.
- Toys R Us was one of the last national toy chains, and more retailers could be in trouble.
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