Uhh you go digital and beat amazon to the punch! Amazon started with just books in a one room office with no war chest ! . You’re toys r us with 100’s of millions of dollars ...they could’ve pioneered the online wave and boxed amazon out ...toys r us may have had to downscale and close stores in the process but it would’ve been voluntary and could’ve been killin it online ....that’s how a savvy business does it ...best buy does a decent job at it cause you can order online and do in store pickups
So close the retail storefronts and go online, basically what you are suggesting is completely change the business. It might as well be a different company at that point because you just closed all your stores, fired 95% of your employees, and you still have the problem of people not buying your product at a sustainable level to fulfill prior contract obligations. .
Best Buy is doing a "decent" job at it because people still buy TVs, phones, and other electronics. Once kids reach a certain age they would rather have a tablet than a toy, that's a big problem for a store that only sells toys.