From Household Name to Forgotten Aisle: How Toys ‘R’ Us Lost Its Emotional Connection


In my latest post, Building Brands That Last, I analyzed brands that have thrived throughout the years by effectively building loyalty and emotional connection with their customers. Toys “R” Us is a great example of what happens when a brand doesn’t move all the way through the Brand Resonance Model.


For decades, Toys “R” Us was the go-to toy retailer with unmatched brand recognition and category salience. It’s giraffe mascot and enormous locations made it the first name that families thought of, a place where not only did kids feel overwhelming excitement but parents found convenience and affordability.


However, overtime the magic faded. The problem came when the brand failed to refresh its imagery (a key stage in the Brand Resonance Model). For kids, a visit to the store stopped feeling as exciting, and for the parents, it ended up feeling more like a chore than an experience like it used to. Meanwhile, competitors like Target, Amazon, and Walmart transformed their shopping experience to be easier, cheaper, and faster, leaving Toys “R” Us feeling outdated.


As customer judgements and emotional ties weakened, the brand’s perception shifted and what once felt like a trusted destination, ended up becoming irrelevant in a rapidly evolving market. According to Statista, Toys “R” Us’ U.S. toy market share dropped from about 18% in 1998 to just 9% by 2016, even though overall toy sales kept rising throughout that time. Without strong customer advocacy at the resonance stage of the model, the company could not withstand the pressure from its competitors. In 2017, the toy company filed for bankruptcy with over $5 billion in debt, while its competitors continued becoming more relevant and building more customer loyalty.


The key takeaway: awareness and product selection alone are simply not enough. In order to remain competitive, brands need to evolve their personality, imagery, and make sure that their brand elements continue to align with their customer’s expectations! Otherwise, even the most recognizable brands risk fading into irrelevance.