On September 18, Toys“R”Us buckled under its $5 billion in debt and declared Chapter 11 bankruptcy. The company pinned particular blame on their Babies“R”Us business, which accounts for nearly 40% of sales. Specifically, the company bemoaned intense competition and “very, very aggressive pricing online.”
Indeed, Amazon, with its bottom-of-the-barrel pricing, accounts for 19.6% of online baby products sales, versus Toys“R”Us’s 5.1%, according to IBISWorld. And the problem only threatens to get worse, as the number of millennial parents increases.