Coming from a new in the last two years dad - I can say I've found all of TWO things in these last two years that Babies r Us actually had the better price on. I get the issues competing with Amazon (brick/mortar space, customer service costs, etc etc) - but Target beat the pants of them and consistently was able to hang with Amazon within a dollar on most items.
Toys R US is/was a huge conglomerate. There is no reason they couldn't have better contracts via economies of scale to drive better sales and a more aggressive price point to bring in traffic. And don't say it's the customer service - cause every local store I've been to would rather avoid eye contact and sit on their phones than even say hello. I groaned every time the kids received a gift card there because I knew it was worth less than any other toy/gift card/cash they could have received.