TAIPEI (TVBS News) — Toys "R" Us (玩具反斗城) closed its Taipei Dunbei (敦北) store on Monday (Dec. 15), reducing the retailer's Taiwan presence to approximately 16 locations from a peak of 34 stores. The company will shutter its Neihu (內湖) store in February, marking the latest contraction in the chain's presence in Taiwan's market. While the company cited an expired lease for the Dunbei closure, industry observers attribute the decline to shifting consumer preferences away from traditional toys.
The Dunbei store operated for more than 20 years before closing, with shoppers snapping up discounted items during its final days. Parents report that children now prefer 3C products, a Taiwan term for computers, communications devices, and consumer electronics, over traditional toys. This shift in preferences has significantly impacted demand for conventional toy retailers across the island.
3C games offer instant gratification and allow children to compete with classmates, making them more appealing than traditional toys. Other toy retailers identify declining birth rates and the rise of online shopping as major challenges facing brick-and-mortar stores in Taiwan. Industry players highlight the competitive pricing of online platforms as a significant obstacle to physical retail operations.
A local consumer, Mr. Chen (陳), said overhead costs for rent and staffing make it difficult for physical stores to compete with online prices. He noted that consumers frequently compare prices online before making a purchase, giving e-commerce a competitive edge. Media reports indicate that Toys "R" Us faces similar challenges in Canada, where the chain is also closing numerous stores, raising questions about the survival of physical toy retailers globally. ◼