Toys ‘R’ Us says to shut about 180 US stores

The company filed for Chapter 11 bankruptcy protection in September casting doubt over the future of its 64,000 employees and nearly 1,600 stores. (Reuters)
Updated 24 January 2018
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Toys ‘R’ Us says to shut about 180 US stores

BENGALURU: Toys ‘R’ Us said on Tuesday it will shut about one-fifth of its stores in the US in the coming months, as the toy store chain tries to emerge from one of the largest ever bankruptcies by a specialty retailer.
The closure of about 180 US stores will begin in early February and continue until mid-April, Chief Executive David Brandon said in a letter on its website.
The company filed for bankruptcy protection just ahead of the crucial holiday season in the US and Canada to restructure $5 billion of long-term debt, casting doubt over the future of its 64,000 employees and nearly 1,600 stores.
All 83 Toys ‘R’ Us stores in Canada will remain open, said president of the Canadian unit, Melanie Teed-Murch, in a letter to customers.
Toys ‘R’ Us, which like other traditional brick-and-mortar retailers has struggled as more and more consumers shop online, is taking steps to try and entice customers to its stores.
The retailer planned to close unprofitable locations and improve its website and loyalty programs while investing in its stores, according to bankruptcy court papers.
Toys ‘R’ Us, which also operates the Babies ‘R’ Us chain, has set aside more than $400 million out of its$3.1 billion in bankruptcy loans for sprucing up about 900 stores over the next three years with more experiences and better-paid staff.
As the Wayne, New Jersey-based company aims to exit bankruptcy in 2018, its efforts to reinvent its stores will shape how other retailers look to experiential shopping to tackle e-commerce.


Passenger numbers rise at Dubai International Airport

Updated 10 December 2018
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Passenger numbers rise at Dubai International Airport

  • Operator welcomes monthly jump after travel decline in past year
  • Dubai Airports launched its Strategic Plan 2020 in 2011 with the aim of increasing passenger capacity from 60 million a year to 90 million by 2018

LONDON: The number of passengers passing through Dubai International Airport rose by 2.1 percent in October compared with the same month last year, the operator Dubai Airports said on Monday.

The increase follows a drop in passenger traffic in September and a wider slowdown in the number of travelers passing through the emirate’s airport over the past year.

“Dubai International has been on record stating that passenger growth would be somewhat lower than in previous years, so this current performance is in line with my expectations,” said aviation analyst Saj Ahmad from Strategic Aero Research.

“That said, the airport has still grown over 2017 and will likely eclipse its 2018 target of handling over 90 million passengers and remain the world’s busiest international airport,” he said.

Dubai Airports CEO Paul Griffiths told a conference in Dubai last month that he expected just over 90 million passengers to use the airport this year, according to Reuters.

A total of 7 million passengers used the airport in October, compared with 6.9 million in the same month last year.

In September, passenger traffic fell by 0.2 percent compared with the previous year. The decline was blamed on the Eid Al-Adha holiday — with an associated spike in travel — falling in September last year.

Total passenger traffic in 2017 rose by just 5.5 percent year-on-year to reach 88.24 million people. This is a slower rate of growth than the 7.2 percent increase in 2015-16 and the 10.7 percent jump recorded between 2014-2015.

Dubai Airports launched its Strategic Plan 2020 in 2011 with the aim of increasing passenger capacity from 60 million a year to 90 million by 2018.

Under the strategy, the number of airport stands has been increased and terminal buildings expanded.

As demand grows, further work on the airport’s infrastructure will be needed, said Ahmad.

“Demand is not infinite — the airport is operating at nearly 98 percent capacity, so it stands to reason that only so much growth can be absorbed,” he said.

DXB handled 237,499 tons of cargo in October, a 2.5 percent increase on the previous month. Overall cargo volumes have fallen year-to-date by 0.9 percent to 2.1 million tons.