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Toys "R" Us

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Toys "R" Us <tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">
</td></tr>
Type Private (owned by Vornado Realty Trust)
Founded Washington, D.C., USA 1948
Headquarters Wayne, New Jersey, USA

<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Gerald L. Storch Chairman and CEO, Toys R Us Inc.</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Retail</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>Toys</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Revenue</th><td>$11.1 billion USD</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Employees</th><td>113,000</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Slogan</th><td>The World's Greatest Toy Store.</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>www.toysrusinc.com</td></tr>

Toys "R" Us is a toy store chain based in the United States, Canada and the United Kingdom. The company operates 587 stores in the United States and nearly 600 stores are operating in 29 other countries, 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 [citation needed], featuring a colorful ferris wheel.

Contents

[edit] History

[edit] Beginnings

Charles Lazarus initially started Toys "R" (LTD) in Washington, DC during the post-war baby boom era in 1948 as a baby furniture retailer known as "Children's Supermart". Its first location was at 2461 18th St, NW, where the nightclub Madam's Organ is currently located. Lazarus began receiving requests from customers for baby toys. After adding baby toys, he got requests for more grown up toys. Eventually the focus of the store changed and Toys "R" Us as we know it was born. The company has since relocated to Wayne, New Jersey.

Image:Toys R Us Chrysler Building.jpg

[edit] 1995 strike in Sweden

In 1994, Toys "R" Us was establishing itself in Sweden, starting with three shops in Stockholm, Gothenburg and Malmö. Contrary to industry custom in Sweden, a country with strong trade unions relying on agreements rather than legislation, Toys "R" Us initially refused to enter a collective bargaining agreement. During the 1995 bargaining this resulted in a strike initiated by Handels (short for Handelsanställdas förbund, "Union of Trading Employees"), the main union organizing the employees.

The strike soon received media attention and sales dropped as customers started to support the strikers. Toys "R" Us offered price cuts to counter the loss of customers, but was not successful. During the strike there was news reports of harsh treatments of employees, further fueling public support. Different groups used the strike to promote both pro- and anti-union views and politics.

The turning point was the initiation of "sympathy measures" (sympatiåtgärder) by a number of other Swedish trade unions, in which members of these unions were instructed to not engage in any work for Toys "R" Us. One example was the garbage not being picked up by members of the public workers union, Kommunal. When the bankers union stopped handling the companies financial transactions Toys "R" Us choose to sign the collective bargaining agreement, reportedly the first in the history of the company. [1]

The strike and the precurring events are sometimes attributed to differences between American and Swedish company culture. Handels still claims that in some respects, the pre-strike working conditions at the Swedish Toys "R" Us shops was in violation of Swedish law. [2]

[edit] Buyout

After several major missteps in the marketplace, mainly precipitated by the removal of Robert Nakasone by the Board of Directors, Toys "R" Us was having difficulty. In an effort to shore up their enterprise, the Board of Directors installed John Eyler, formally 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 Stores), Toys "R" Us considered splitting its toys and babies 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 52-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.

Image:Toysrus.jpg

[edit] Amazon 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 company's perspectives. The judge in the matter had this to say about Amazon's top brass testimony:

In her 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.” [3][4]

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. [5][6]

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 are to be converted to the "Babies "R" Us" format. Approximately 3000 jobs will be eliminated as a result of the closures. [7]

[edit] Other "'R' Us" chains

Toys "R" Us, Inc. also owns other chains:

  • Kids "R" Us - A store that is out of business, dealt with children's clothing. Most Kids "R" Us stores were co-branded with Toys "R" Us. Kids "R" Us is also the brand name label of kids' clothing found at the Geoffrey Stores.
  • Babies "R" Us - Baby superstores.
  • Geoffrey's Toys "R" Us/Geoffrey's - Stores for Toys "R" Us mascot Geoffrey the Giraffe, offering toys, juvenile merchandise, and children's apparel all in one location. Other features include a "Studio G" activity center. Mostly found in the American Midwest.
  • Toys "R" Us Toy Box (introduced in 2003) - This version of Toys "R" Us is found in Albertsons, Osco Drug, Jewel-Osco, Sav-on supermarkets & drug stores, and stores in Hong Kong and Singapore.
  • Toys "R" Us KidsWorld - A toy superstore format introduced in 1996. Stores were built in Elizabeth, New Jersey, and Fairfax, Virginia (which was remodelled in 2006 into a standard Toys "R" Us).
  • Toys "R" Us/Kids "R" Us co-branded stores.
  • Toys "R" Us Express - mini store version of Toys "R" Us, found inside Asian stores. (Hong Kong, Macau, Malaysia, Taiwan (Republic of China), and other)
  • Imaginarium - A independent chain of kids toys stores with a focus on learning toys, located mostly in malls was bought in 1999 by Toys "R" Us, when most of the Toys "R" Us were remodeled they now included an Imaginarium department. Its mascots were Cosmo (a purple puppy ) and Professor Fun.

[edit] Logo

Image:Babies!.jpg

The yellow reverse "R" in quotation marks, which is similar to the character "ya" (Я) in the Cyrillic alphabet, imitates a small child's backward writing of "R", which is short for "are". The "R" is the most distinctive part of the retailer's colorful kid-friendly logo. The current, modernized Toys "R" Us logo was introduced in the 1980s, a blue star was added to the logo in 1999. The "R Us" name has been imitated by many other businesses, such as Tiles "R" Us and Babies "R" Us.

[edit] Mascot

Image:Geoffrey Giraffe.gif

In the 1960s, Geoffrey the Giraffe, an anthropomorphic cartoon giraffe character, was introduced as its mascot. His name has been followed in the 1970s, after a "Name the Mascot"-type contest and later on he had been given an extended family, his wife, Gigi, his daughter, Baby Gee, and his son, Geoffrey Junior. Recently, he was re-introduced not as a cartoon character, but as a real-life giraffe who talks. An animatronic version of Geoffrey the Giraffe (created by Stan Winston Studios), was voiced by Jim Hanks in commercials for radio and television, since 2001.

In the UK, the Geoffrey mascot has been phased out in favour of the backwards R logo - however some older stores still retain Geoffrey on the store frontage, whilst the newer stores have the backwards R logo only.

[edit] Slogans

  • "The World's JOY Store!"
  • "Big Fun! Low Prices!"
  • "Lower Prices. Bigger Selection. Guaranteed."
  • "The World's Biggest Toy Store."
  • "R toys us? You bet they R!" (as seen in a 1978 print ad)
  • "The World's Greatest Toy Store."
  • "Play More, Spend Less."
  • "You'll never outgrow us."
  • "There's millions says Geoffrey all under one roof, it's called Toys "R" Us, Toys "R" Us, Toys "R" Us!" (used in the UK only)
  • "I don't want to grow up, I'm a Toys "R" Us kid!"

[edit] Countries / regions with Toys "R" Us stores

Toys "R" Us, International is a separate division of 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 570 toy stores in 29 countries outside the United States.

Image:Toysrus Japan 03.jpg
Image:Toysrus Japan 02.jpg

[edit] Trivia

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You can help Wikipedia by introducing appropriate citations. This article has been tagged since December 2006.
  • Nintendo games accounted for most of Toys "R" Us' sales in the mid-1980s.
  • Most "Geoffrey" and "Geoffrey's Toys "R" Us" stores are located in the midwest. The stores are basically a regular Toys "R" Us store given a complete overhaul to feature a more colorful motif, "Studio G" activity center, "Candy Spot", "Imaginarium", "Gee Baby", "The "R" ZONE", a Party Spot to host birthday parties and an adjacent playground with the existing collection of toys and clothes. In addition to that, Geoffrey comes out to host the birthday parties (as he gets to dance with his birthday guests, and sings the song "Happy Birthday for Geoffrey!" via the tape, since Geoffrey isn't allowed to speak).
  • The "R" Zone is now featured in most all Toys "R" Us stores now. It was formally percieved as a "store-within-a-store" because it was closed off from the main store for security reasons. As of late, the majority of Toys "R" Us stores have opened up the "R" Zone to make it feel like it is part of the larger store.
  • The car chase scene in the movie Blues Brothers included a shopping mall chase scene which featured a Toys "R" Us at Dixie Square Mall where Jake and Elwood are being chased by the police into the main concourse of the mall.
  • There are several spoofs on Toys "R" Us including a resort in the small country of Belize called Belize "R" Us [10].
  • In the 1985 movie Back to the Future, a Toys "R" Us sign can be seen in the background behind the Burger King that Marty McFly skateboards past on his way from Dr. Emmett L. Brown's garage to downtown Hill Valley. The Toys "R" Us in that clip actually belongs to a strip mall in Burbank, California on Victory Boulevard.
  • Toys "R" Us usually gets certain types of LEGO building sets earlier in the year that are supposed to be found everywhere else later in the year. One example is the LEGO SpongeBob SquarePants building sets that were available in May instead of the August deadline.
  • On the Mystery Science Theater 3000 episode The Amazing Colossal Man, the title character says "I don't want to grow anymore." Joel screams in response "I'm a Toys 'R' Us kid!"
  • In 2006, The Murfreesboro, TN location was the 3rd Best in income/revenue

[edit] External links

fr:Toys "R" Us ja:トイザラス th:ทอยส์ "อาร์" อัส zh:玩具反斗城

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