More Work Needed at Toys 'R' Us

It has already spruced up stores and cut prices, but such moves still haven't been enough to put it back at the top of its game

Until recently, Wall Street had been hoping that this holiday season would herald a turnaround for Toys 'R' Us (TOY ) in its struggle against discount stores. In the last two years, the toy retailer made many of the changes investors and analysts thought might return Toys 'R' Us to its former dominance. It remodeled stores, refreshed inventory, and became more price-competitive on popular toys. This was supposed to be the Christmas that delivered the reward for those changes.

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