Toys R Us has filed for bankruptcy in the United States and Canada, which will help relieve it from this debt (Hirsch, 2017). This can be attributed to the rise of e-commerce, where people buy online on sites such as Amazon and eBay. Toys R Us did launch its own website in 1998 and it became one of the fastest growing sites in the toy category. As Toys R Us tried to improve its business strategy, so did its competitors. Walmart and Target also sell toys but also offer the convenience of one stop shopping for its customers whereas Toys R Us is unable to do so. In the age of technology, many children prefer I-Pads and I-Phones to traditional toys further dwindling sales of Toys R Us. In 2011, Toys R Us’ domestic U.S. sales were worse than that of 2008, which was one of the worst holiday seasons for retailers. The president of the company resigned after only 10 months despite signing a one-year contract. In 2012, the department heads for administration and merchandising also resigned from their positions. The executives at Toys R Us have been experiencing high turnover within the past seven years (Clifford & Lattman, 2012). The company is grappling with how to grow the business with all of the competition. Sales are dwindling and competition is thriving but what caused these issues to arise for a company that seemed to doing very well? According to Hartung (2017), KKR and Bain Capital acquired Toys R Us in 2005 for $6.6 billion plus $1 billion of debt at a total valuation of $7.6 billion. KKR and Bain Capital put in $1.3 billion and used the company’s assets to raise the remaining amount bringing the debt from $1 billion to $6.2 billion, which was 82.7% of total capital. The interest rate on this debt was around 7.25% that created payments of $450 million per year on interest alone. The plan was to cut company costs, improve cash flow, and pay off the debt. The rise of e-commerce, at the time, was not anticipated. Amazon was only an $8.5 billion company in 2005 as opposed to the $100 billion dollar giant it is today. The executives set the company up for failure right from the acquisition. Due to its debt, Toys R Us was unable to venture into the online market as aggressively as they should have to counter Amazon. The company also could not keep up with Walmart’s low prices. Walmart would take a loss by pricing toys and other popular items at steeply low prices to get customers into their stores so they could spend on other big-ticket items. Customer service and shopping experience at Toys R Us were sub par at best and not inviting to customers. American Girl Doll, which is also an exclusive toy retailer, has seen tremendous, continuous success due to its interactive geared shopping experience for customers. American Girl Doll only sells doll, which one would assume could be its detriment as was with Toys R Us. The same factors that plague Toys R Us are the same factors that American Girl Doll must deal with. American Girl Doll is able to thrive and be profitable because of the unique experience they provide. Each toy comes with a historical background, a story, and accessories, which sell even at their high price point. Bhattarai (2017) states, that smaller neighborhood toy stores are thriving and increasing sales every year while Toys R Us, a retail giant is failing. What sets these smaller stores apart is the customer service of helpful employees, the carefully curated selection, gift-wrapping services, and lego building events. These stores are providing a unique shopping experience that Toys R Us is lacking. “Kids these days are restless – they’re looking for an interactive experience,” said Susan Lee, a partner at marketing firm Simon Kucher & Partners. “It >