Toys 'R' Us made three big mistakes.

The first mistake was in early 2000, when it signed a 10-year contract to be the exclusive vendor of toys on Amazon, instead of investing in its own e-commerce site.

The second mistake was not testing out new ideas for its retail locations early enough. When it finally got around to testing new concepts for its stores, it was already too late.

The third mistake was being over-leveraged from investments and being forced to make large interest payments, which hampered its ability to invest in innovation.

Now, the company is closing all of its stores in the U.S. and looking to sell all its stores in Canada.

It's bad news for everyone who grew up shopping at Toys 'R' Us.

Amazon doesn't think so. It's been awfully quiet about Toys 'R' Us, and now it's considering making a big move.

Amazon is thinking about buying Toys 'R' Us, but not for the reasons you think it is.

It could care less about the brand, and sadly, it cares less about Geoffrey the Giraffe.

It wants the retail space.

Why this is a genius move.

Amazon already invested in buying over 440 Whole Foods locations and now this gives the company another opportunity to get physically closer to all of us.

As Walmart ramps up its same-day delivery, this gives Amazon more locations to get products to you faster.

This speeds up its ability to roll-out checkout-free retail locations and its ability to test real bookstores. It gives the company the ability to show-off Amazon Echos and other Amazon-branded products.

There are over 700 Toys 'R' Us locations, and it looks like Amazon will choose the best locations that make sense for it.

This gives Amazon a strong advantage if it goes through with these acquisitions. 

I don't know about you, but I'm excited to get Amazon closer to wherever I am. Digital Amazon is already a juggernaut. Digital with a physical presence will create an experience that we've all been wishing for.

I'll miss the giraffe. Everything else, not so much.

Published on: Mar 20, 2018