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In this blog, we will be blogging stuffs related to retailing.
And this blog will be updated on a weekly basics.
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We have decided to choose Toys "R" Us as our retail format. It is a category specialist as it offers toys of all variety and prevents competition from stores like the toy department of other department stores.

A brief introduction of Toys "R" Us

Toys "R" Us was founded in 1948(Washington, D.C., U.S.) as a Children's Supermarket and only in 1957 (Rockville, Maryland, U.S.), it is known as Toys "R" Us

Toys "R" Us is a toy store chain based in the United States. The chain also has locations in Europe, Asia, Oceania, Africa, and Canada. The company currently operates 585 stores in the United States and 716 stores in 34 other countries, with some of them under franchises or licenses. The flagship store in New York City's Times Square is the largest toy store in the world, featuring a colorful Ferris wheel. It is the largest toy-centered retailer and the second largest overall toy retailer in the United States (Wal-Mart being the largest).

Industry : Retail
Products : Toys
Revenue : $13.646 billion USD (2007)
Employees: 97,000
Website :
www.toysrus.com
www.toys.com
www.toysrus.com.sg

History - The early years

Chuck Lazarus initially started a Children's Supermarket, which would later evolve into the modern day Toys "R" Us in Washington, DC during the post-war baby boom era in 1948 as a baby furniture retailer. Its first location was at 2461 18th St, NW, where the nightclub, Madam's Organ Blues Bar is currently located. Lazarus began receiving requests from customers for baby toys. After adding baby toys, he got requests for more mature toys. Eventually, the focus of the store changed in 1957 and Toys "R" Us as it is known today was born in Rockville, Maryland when Toys "R" Us was acquired in 1966 by Interstate Stores, owner of the White Front and Topps Department Stores as well as Children's Bargain Town USA, a sister toy store chain to Toys "R" Us in the American Midwest which would later be rebranded as part of the Toys "R" Us chain. The original Toys "R" Us store design in the 1970s and 1980s consisted of vertical rainbow stripes and a brown roof with a front entrance and side exit. Some brown roof locations still exist, although some were painted different colors or renovated in recent years. Toys "R" Us is also notable for making its mark in popular culture for being mentioned, parodied, or appearing in movies and TV shows, such as Back to the Future, The Blues Brothers, The Simpsons, Family Guy,The Flintstones, and Mystery Science Theater 3000.

The buyout

In an effort to improve its company, the Board of Directors installed John Eyler, formerly of FAO Schwarz. Eyler launched an unsuccessful, and very expensive plan to remodel and re-launch the chain. Blaming market pressures (primarily competition from Wal-Mart and Target), Toys "R" Us considered splitting its toys and baby businesses. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts & Co. (KKR), and Vornado Realty Trust completed the $6.6 billion acquisition of the toy giant. Public stock closed for the last time at $26.74, just pennies from the 68-week high, but far short of its all time high of almost $45 in fourth-quarter 1993, and its five-year high of $31 in 2Q 2001. Toys "R" Us is now a privately owned entity.

Amazon.com lawsuit

In early 2006, Toys "R" Us won a major battle against Amazon.com after years of bitter battles over their original 10 year contract made at the height of the dotcom boom at the turn of the century. The battle focused on exclusivity rights as viewed from both companies' perspectives. The judge in the matter believed Amazon's top officials were not completely forthcoming in their testimony during the trial:

In her [the judge's] opinion, McVeigh took a rather dim view of the trial testimony of some Amazon executives, including that of the company’s billionaire founder Jeff Bezos, saying she had "no doubt his knowledge and understanding (of the Toys "R" Us agreement) went much deeper than revealed." When pushed on the witness stand, "certain information 'just came back to him'" she said in the ruling, while another of Bezos’ explanations was referred to as "rather childlike."

Toys "R" Us, after winning the right to end its contract with Amazon.com, forged a partnership with GSI Commerce, a company specializing in running e-commerce sites. By the middle of 2006, Amazon's stock had taken serious 15% losses, one consideration being the $50 million per year payment lost from Toys "R" Us. Amazon announced the loss of the case late in the quarter to its stock owners.

Closure of 87 stores

On January 9, 2006, Toys "R" Us announced that 87 stores in the United States would close that year, most closing within the spring. 12 more stores were to be converted to the "Babies "R" Us" format. Approximately 3,000 jobs were eliminated as a result of the closures.

Mascot - Geoffrey Jr.

In the 1960s, an anthropomorphic giraffe cartoon character was introduced as Toys "R" Us' mascot. His name, Geoffrey the Giraffe, followed in the 1970s, after a "Name the Mascot"–type contest. In 1973, Geoffrey was given a family with the addition of his wife Gigi. However, over time and with different marketing campaigns, it has been unclear as to whether Gigi is Geoffrey's wife or sister. Also in 1973, Geoffrey's daughter, Baby Gee, was introduced. In 1979, his son Junior (a.k.a. Geoffrey Junior) was added. Geoffrey was then re-introduced in 2001, after being given a full makeover. He then appeared not as a cartoon character, but rather as a real-life giraffe who talks; an animatronic version of Geoffrey the Giraffe (created by Stan Winston Studios) was voiced by Jim Hanks, brother of actor Tom Hanks, in commercials for radio and television. The character's present appearance is again that of a cartoon.

International locations

Toys "R" Us, International is a separate division which operates the toy stores outside of the United States. Toys "R" Us, International opened its first stores in 1984 in Singapore and Canada. Today, Toys "R" Us International operates, licenses or franchises approximately 688 toy stores in 33 countries outside the United States.

* Australia
* Austria
* Bahrain
* Canada
* Chad
* China
* Denmark
* Egypt
* Finland
* France
* Germany
* Hong Kong
* Iceland
* India
* Ireland
* Israel
* Italy
* Japan
* Kuwait
* Macau
* Malaysia
* Norway
* Philippines
* Portugal
* Qatar
* Saudi Arabia
* Singapore, established 1984, 7 stores including Vivocity
* South Africa
* South Korea
* Spain
* Sweden
* Switzerland
* Republic of China, Taiwan
* Thailand
* Turkey
* United Arab Emirates
* United Kingdom
* United States, established 1948 as Children's Supermart, changed its name to Toys "R" Us in 1957, and in the early 1970s, Interstate Stores, Inc. (now known as Toys "R" Us, Inc.) bought out Children's Bargain Town USA, a similar midwest toy store chain.

Countries where Toys R Us is no longer active

Netherlands, established 1993, 17 stores. All stores continued on March 3rd 2009 as Toys XL. Toys R Us tried to sell it's stores in 1997 already but encountered objections from the European Competition regulator.