Halting the race to the bottom by moving the focus away from discounting is a good start. The capital expenditures are much needed and will improve the customer experience, although it is a delicate balance between investing in capex and also reducing long term debt, which is critical to their success and has been an issue for so many others in the sector.
A tiny percentage of retailers complete successful turnarounds in bankruptcy. Most will liquidate or be sold. The Bankruptcy Code (following the 2005 changes) does not provide time to experiment with new strategies. In order to achieve the turnaround, bankruptcy has to be used as a tool to execute a specific predetermined plan. I'm not sure that the amount of new money and the longer runway under the Toys "R" Us debtor-in-possession credit facility (compared to other recent DIPs) will be enough to overcome the challenges they face.