At Toys “R” Us, turnaround hopes rest on holiday rush

Welcome to the final stretch of the holiday shopping season, as frantic shoppers and desperate retailers shift their focus to last-minute trips to the store.

Nearly half of Americans have yet to finish their holiday shopping, according to a survey released Wednesday by the National Retail Federation.

It's a critical time for retailers, too, as they duke it out for the last of shoppers' budgets. Kohl's stores are staying open around the clock from Thursday until Christmas Eve, while Nordstrom is offering 24-hour curbside pickup across the country.

The retail industry has had a tough year. Hundreds of companies have filed for bankruptcy, and many more have closed stores as they struggle to compete with such online giants as Amazon.com. Some, including Target, have warned that holiday sales may not be as robust as they had hoped.

Analysts said they are expecting it to be another challenging season for department store chains including Macy's, Kohl's, J.C. Penney and Sears. (Jeffrey P. Bezos, the founder and chief executive of Amazon, owns the Washington Post.)

For Toys 'R” Us, the run-up to the holidays is particularly important. The retailer filed for bankruptcy protection in September, right before a three-month period that typically accounts for nearly 40 percent of its annual sales.

There have been reports that the company is considering closing at least 100 stores across the country as it looks to pay down $7.9 billion in outstanding debt.

This week brought more troubling news - Toys 'R” Us reported an eight percent sales drop for the period ending in September, contributing to a $623 million loss.

The company has added 'Play Labs” to some of its stores, where children can test new toys, and created an augmented reality app that allows shoppers to play virtual basketball and other games while they're shopping. But analysts said it will take more than one holiday season to turn things around.