Case study: the rise and fall of Toys “R” Us

In this B2-C1 ESL case study lesson on the rise, fall, and revival of Toys “R” Us, students explore one of the most iconic toy retailers in history. The lesson encourages learners to think critically about business strategies, debt management, and the impact of technology and consumer habits on retail. Students also expand their vocabulary related to business, finance, and retail operations, while practising how to discuss company performance, market trends, and strategic decision-making. Another lesson you might find useful is “Understanding financial statements“.

Activities overview

Speaking – Lead-in Discussion:
Students begin by discussing their childhood experiences with toys, where they purchased toys in the past versus now, and their opinions on shopping in-store versus online. This activity activates background knowledge and introduces the topic of retail and the Toys “R” Us case study.

Vocabulary – Business and Finance Terms:
Learners match key vocabulary such as leveraged buyout, insolvency, creditor, debt, liquidation, private equity firm, exclusive rights, loss leader, and powerhouse with their definitions. They then complete sentences using these words in context to reinforce meaning and usage. Students expand their vocabulary further by learning practical expressions and verbs such as to set you back financially, to turn a business around, to slash prices, to file for bankruptcy, to be contracting, to keep afloat, and to undercut. They match each expression with its definition, practise correct usage, and apply them in sentence-rewriting exercises.

Listening – Video Case Study:
Students watch a multi-part video called “The rise and fall of Toys “R” Us.” They complete comprehension exercises focusing on the impact of online shopping, partnerships with Amazon and Macy’s, and strategic mistakes. They answer questions about company responses to competition and changing consumer habits.

Speaking – Group Discussion and Analysis:
Learners work in pairs or small groups to rank the key “players” in the Toys “R” Us case study by their contribution to the company’s decline. They discuss factors such as private equity firms, competitors, vendors, executives, and changing consumer behavior.

Reading – Case Study Extension:
Students read about the different fates of Toys “R” Us in the US, Canada, and Asia. They analyse how market strategies, debt, and management decisions affected each region. Learners complete a table summarizing the current situation and reflect on lessons for modern retailers.

For more speaking and business practice, you can use the printable conversatrion cards cards.