Toys “R” Us may be bankrupt, but it is not dead yet. The company said it will add 12,050 temporary holiday workers. For those who want to apply, the process begins online.
Toys “R” Us was financially ruined more by debt than by sales. In the fiscal quarter that ended April 29, revenue was $2.2 billion, compared to $2.3 billion in the same period a year earlier. It had an operating loss of $54 million, compared to a $7 million loss in the comparable period of 2016. Although the results are not enviable, they are much better than for other large struggling retailers.
The number of holiday employees Toy “R” Us will hire is well below the level of much larger retailers, some of which will add tens of thousands. Wal-Mart Stores Inc. (NYSE: WMT) has decided that rather than hiring outsiders, it will give current workers more hours of work
Regardless of how large retailers staff for the holidays, the fourth quarter will be a make or break period for companies in deep trouble. At this point, that includes almost every large department store in the country. The same is true of a number of niche retailers. For example, Bed, Bath & Beyond Inc. (NYSE: BBBY) just posted horrible results will drove its share price down 15%.
For those with interest in the Toys “R” Us jobs, they will be concentrated in a few cities:
Markets with the largest seasonal hiring needs include:
• New York, NY – more than 3,800
• Los Angeles, CA – more than 2,400
• Groveport, OH – more than 2,400 (DHL Supply Chain Fulfillment Center)
• Philadelphia, PA – more than 1,400
• Chicago, IL – more than 1,100
• Boston, MA – more than 950
Hours are flexible. The positions include cashiers, sales associates, stock associates, “toy demonstrator” and order fulfillment associates. Odds are that the toy demonstrator will be the most sought-after job.
Tim Grace, executive vice president and global chief talent officer at Toys “R” Us said:
Every year, we look for candidates that share our vision and want to help gift givers bring joy to kids nationwide while having fun along the way. We are also committed to making Toys“R”Us a great place to work – and play – for all Team Members during the holiday season and beyond.
If Toys “R” Us sales are weak in the fourth quarter, it may not make the same offer in 2018.