It had recently launched its new online store and promised customers that all orders placed before December 10th would be delivered before Christmas. But the strain of a new online store, pressure on its supply chain, lack of manpower to deal with the surplus of orders, and not enough time proved to be too much. As a result, Toys “R” Us sent out apology letters two days before Christmas stating that the orders would not arrive in time for the holiday. Customers were outraged and the company’s reputation suffered. Toys “R” Us was quick to make amends offering all affected customers a $100 gift certificate but the damage had been done. The company immediately set about to repair the damage and regain the trust of its customers. It embarked on a ten year partnership with Amazon that would redirect Toys “R” Us online customers to Amazon for orders. Through the years, the company slowly rebounded. (site article #9). Unfortunately, in the 2015 holiday season, Toys “R” Us had another setback. The company ran out of stock in its stores and customers were complaining of the empty shelves. According to Wall Street Journal, it had a stock of only 62% online for the top 100 selling toys during Black Friday. While this is on track with its competitors, it was far below the recommended 95%. In the past, Toys “R” Us considered its shelves stocked if it had three units of an SKU for each product. However, this left their shelves looking empty and understocked to customers, especially if a product was purchase. (site article
It had recently launched its new online store and promised customers that all orders placed before December 10th would be delivered before Christmas. But the strain of a new online store, pressure on its supply chain, lack of manpower to deal with the surplus of orders, and not enough time proved to be too much. As a result, Toys “R” Us sent out apology letters two days before Christmas stating that the orders would not arrive in time for the holiday. Customers were outraged and the company’s reputation suffered. Toys “R” Us was quick to make amends offering all affected customers a $100 gift certificate but the damage had been done. The company immediately set about to repair the damage and regain the trust of its customers. It embarked on a ten year partnership with Amazon that would redirect Toys “R” Us online customers to Amazon for orders. Through the years, the company slowly rebounded. (site article #9). Unfortunately, in the 2015 holiday season, Toys “R” Us had another setback. The company ran out of stock in its stores and customers were complaining of the empty shelves. According to Wall Street Journal, it had a stock of only 62% online for the top 100 selling toys during Black Friday. While this is on track with its competitors, it was far below the recommended 95%. In the past, Toys “R” Us considered its shelves stocked if it had three units of an SKU for each product. However, this left their shelves looking empty and understocked to customers, especially if a product was purchase. (site article