Retail analyst, Kate Hardcastle said, "Toys R Us has seen a rise in e-commerce as customers feel more comfortable with online shopping".
He also pointed to a "significant growth" in online sales and its click-and-collect offering.
While the store at Kingsway Retail Park has not been earmarked for closure, a spokeswoman for Toys "R" Us said that it was "reviewing options".
In September this year Toys "R" Us filed for bankruptcy protection in the U.S., with waning sales spreading in their United Kingdom market.
The company has struggled to compete with online retailers and intends to shut 26 United Kingdom stores in total.
The private equity-owned company has suffered falling like-for-like sales, with analysts saying it has failed to aggressively build up its online business and lost sales to competitors like Amazon.
Just days before Christmas, struggling USA retailer Toys R Us has announced plans to close 26 stores in the United Kingdom, putting at risk around 800 jobs.
Toys R Us became...
GETTY DAMNING FIGURES Toys R Us owes £300m in debt next year alone
A Toys "R" Us UK spokeswoman said: "It is likely that the Cambridge store will close in the spring of 2018".
The UK business is understood to have made a loss for seven out of the past eight years of trading.
Managing director Steve Knights said: "Like many retailers in today's market environment, we need to transform our business so that we have a platform that can better meet customers' evolving needs".
Mr Knights said: "Like many United Kingdom retailers in today's market environment, we need to transform our business so that we have a platform that can better meet customers' evolving needs".
'The decision to propose this CVA was a hard one, but we (are) determined it is the best path forward to make essential changes to the business'.
The CVA proposal will be voted on by creditors on 21 December.
The UK arm of Toys R Us is owned by the United States company, but run as a separate business.