Related to #2: Complete misunderstanding of online sales in the internet era. Their website was crap and borderline unusable for years and years; customers wanting to order a toy often gave up in disgust and went elsewhere. As their competition went increasingly online, TRU thought that opening more and more brick and mortar stores was the answer. Continuing to publish a printed catalog until IIRC just last year and devoting resources to it instead of moving it all online and devoting support there was another screw-up.
Your points applies to many formerly huge retailers. Like Sears for instance.
A hundred years ago Sears catalogs ruled the nation.
If only Sears could have used that same forward thinking technology as the internet age developed. They would not be on life support as they are now.
Continuing to publish a printed catalog
= = =
I Think I still have the last Sears Christmas catalog they sent out.
As a kid, that thing got really worked over every year by me and my siblings.