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toys r us

Transcript: BY: Jessica Stillwell Fun Facts Toysrus, Babiesrus, eToys, and FAO Logos and slogons Toys“R”Us, Inc. is the world’s leading dedicated toy and juvenile products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 875 Toys“R”Us and Babies“R”Us stores in the United States and Puerto Rico, and in more than 625 international stores and over 140 licensed stores in 35 countries and jurisdictions. In addition, it exclusively operates the legendary FAO Schwarz® brand and sells extraordinary toys in the brand’s flagship store on Fifth Avenue in New York City. Toys R Us Today Timeline Founder 2006 •Received a SPARC award (Supplier Performance Awards by Retail Category) from Retailing Today for being an Outstanding Corporate Citizen for the 2006 Toys for Tots campaign 2010 •Cause Marketing Forum Halo Awards Silver award in the Best Social Service/Education category for the Toys“R”Us Focus on Baby Safety Campaign Silver award in the Best Digital Marketing Campaign category for the “Join Shaq Give Back” Marine Toys for Tots fundraising initiative 1948 • Charles Lazarus opens his first baby furniture store, Children’s Bargain Town, in Washington, D.C. 1950 • To meet customer demand, Lazarus begins selling toys 1957 • Lazarus adopts supermarket model for his stores and renames specialty toy chain, Toys“R”Us® 1960 • Mascot and spokes animal Geoffrey® the Giraffe introduced in newspaper advertisements 1966 • Four stores in the Washington, D.C. area reach total sales of $12 million; • Lazarus sells chain to Interstate Stores for $7.5 million, but continues to run Toys“R”Us 1968 • Geoffrey the Giraffe begins making in-store appearances at Toys“R”Us stores 1974 • Interstate Stores files for bankruptcy; Lazarus appointed to run Interstate Stores 1978 • Lazarus leads Interstate Stores out of bankruptcy, changes name to Toys“R”Us, Inc. and begins trading on the New York Stock Exchange (NYSE) 1983 • Kids“R”Us® premieres in Para mus, New Jersey and Brooklyn, New York 1984 • Toys“R”Us opens its first international stores in Canada and Singapore 1985 • Charles Lazarus hosts the first Toys“R”Us benefit gala in New York City to raise funds for children’s charities 1992 • Japan celebrates its first Toys“R”Us location with a visit by President George H. Bush • Toys“R”Us, Inc. establishes the Toys“R”Us Children’s Fund, a non-profit organization dedicated to improving the health and well-being of children 1994 • Michael Gold stein assumes Chief Executive Officer title from Charles Lazarus 1996 • Babies“R”Us® makes its debut in West bury, New York 1997 • Babies“R”Us acquires and merges with Baby Superstore 1998 • Robert Masonite appointed Chief Executive Officer of Toys“R”Us, Inc. Toys“R”Us, Inc. launches Toysrus.com 1999 • Toys“R”Us, Inc. acquires Imaginarium® 2000 • John Euler joins Toys“R”Us, Inc. as President and Chief Executive Officer • Partial IPO of Toys“R”Us Japan completed • Toys“R”Us, signs partnership deal with Amazon.com® 2001 • Toys“R”Us, Inc. establishes an international flagship store with the highly-anticipated opening of Toys“R”Us Times Square, The Center of the Toy Universe® Charles Lazarus Business Parteners Toys R Us

Toys R Us

Transcript: Financials Expand the online streaming experience: Create exclusive series (featuring Geoffrey) Enhanced marketing of series Most children particular about what they want Strengths Intense competition Derek King Corissa Shipe Jason Phillips Samantha Oakley Maggie Casper "Geoffrey "& Friends" "Bark-Box" & "Tree-Top Treats" "This Christmas could be make-or-break for Toys 'R' Us" Reasons for decline in sales: e-commerce competition takeover of electronic toys Walmart/Target outselling Toys "R" Us Specific Recommendations Threat of Substitute Products Sell 400 of the same game title Video games cost, on average, 37% more at Toys "R" Us than Amazon.com Core competencies high inventory, high product selection multiple online venues convenience and location Current strategies: Toys "R" Us Express stores open in temporary locations for holiday sales Huge push on gift card sales Creating "superstores" with Babies "R" Us Bargaining Power of Suppliers Threats Long-established relationships Few "Big Time" distributors Strong market competition with Wal-Mart Pay disputes by employees have been highlighted by the media Threat of low cost manufacturers like those in China Sudden closing of 87 stores and firing of employees showed the company as unreliable Founded in 1948 by Charles Lazarus Focused on selling baby furniture "Focus on the everyday shopper" More than 1000 stores in the US and internationally Target Price-sensitive industry Competition from low-cost leaders HIGH Threat of New Entrants LOW HIGH Amazon Expand "Toys R Us" line Opportunities Continue to expand overseas based on cultural tastes (target China and India) High start-up costs History Internet business (FAO.com, ETOYS.com, TOYS.com, TRU.com) Brand recognition - 1500 stores Standardized Limited power of suppliers Wide range of products Positive results from Express locations Toys “R” Us charity work has previously enhanced reputation Possible expansion into China and India along with other emerging economies Current Events Toys "R" Us Strategy No specific "line" at ToysRUs Bargaining Power of Buyers LOW Buy in bulk LOW Walmart No single, sustainable competitive advantage FAO Schwartz is only component that is “set apart” Losing stronghold to innovative companies (such as Disney) “Seasonal” sales (dependent on last quarter) Need to push sales and promote non-holiday shopping Rivalry Among Competitors Porter's Five Forces Well-established brands in place Weaknesses "Amazon (AMZN) versus Toys 'R' Us" Few comparable substitutes Solutions Net sales were $2.4 billion, a decrease of $175 million or 6.9% versus the prior year Net loss was $113 million, compared to $36 million in the prior year primarily due to the decrease in operating earnings

Toys "R" US

Transcript: Toys“R”Us: founded by Charles Lazarus in 1948 headquartered in Wayne, New Jersey the world’s leading toy and baby products retailer employs about 66,000 employees worldwide offers a differentiated shopping experience through its family of brands. In 2005 it went out of it’s way to help the Louisiana victims of hurricane Katrina. Toys "R" Us donated six trucks full of toys and baby supplies including diapers, wipes, and formula to multiple locations that were housing evacuees. Babies "R" Us has also donated over 17 pallets of baby and children’s clothing to the national charity Kids In Distressed Situations (KIDS). Such associations will help to sustain its brand with key consumers. TRU decided to enter the Japanese market because it’s one of the largest markets. Their first store in Japan opened on December 20 1991. Toys “R” Us has no single and sustainable competitive advantage, other than brand. Heavily dependent upon successful sales during the final quarter of the year. Later almost 40% of the stores were located outside US. Here are a few examples of their biggest exclusive toys: • The retailer's Tabeo tablet, which goes for $150 and includes 50 kid-friendly apps. • A baby clothing line with designer Heidi Klum. • A 42-inch Teenage Mutant Ninja Turtles playset. • Dolls from the popular "Monster High" line. • A toy tools line with Home Depot. Japanese reportedly preferred personal attention from the shop owner rather than low prices. Japanese consumers prefer buying online. In addition to customer habbits and personal loyalties, Japan’s retail structure was also bolstered by a series of laws restricting the spread of larger retail stores. All retail shops bought their toys from local wholesalers usually for 75-80% of the manufactured “suggested price”. First, he started his business by selling imported bags and shoes. he seized on the opportunity to start Mc Donald’s franchises in Japan in 1971. His strategy for selling Mc Donald’s to the Japanese people inolved the following statement:” The reason Japanese people are so short and Even the competition began to realize that successful large toy stores could spark a boom in the toy market. Soon competitors began copying some of the approaches used by toysrus. Motto:”Give the customer what they want” Toys "R" US There is strong competitive rivalry in the toy market, not only form Wal-Mart, but also from KB Toys and Target Toys"R"Us opened its first outlet in Canada in 1984 and then it moved to parts of Europe, Hong Kong and Singapore. The international business model applied to new markets was the same as that used by the company in the USA: the stores resembled each other, and each store had a self-service supermarket format that offered a variety of toys sold at low prices. Toys 'R' Us knows that in order to beat the competition, it needs to provide products that are not available anywhere else. Den Fujita Despite Germany’s economic downturn in the 1990s, this country still has the main advantage of a strong economy, that attracts many multinationals willing to set up operations in Europe. Because of its strong economy Germany has a great influence on what happens in the rest of Europe. In addition, TRU exclusively operates the legendary FAO Schwarz® brand, the oldest toy store in the United States. FAO Schwarz was founded in 1862 under the name "Toy Bazaar" by German immigrant Frederick August Otto Schwarz. Toys "R" Us has in excess of 1500 superstores in the United States and Worldwide. It owns the baby brand, Babies R Us which adds another 200 + stores. It has a huge distribution network that benefits from advanced logistical systems. The company has a strong bargaining position when it comes to buying prices from manufacturers. have yellow skins is because they have eaten nothing but fish and rice for two thousand years... If we eat McDonald's hamburgers and potatoes for a thousand years we will become taller, our skin become white, and our hair blonde While American trade negotiators launched a frontal assault, he quietly pressed the Government to ease laws that had made it next to impossible to build large-scale stores. That cleared the way for what is regarded as one of the most promising new retail chains in Japan, Toys "R" Us. In a nation whose economic vigor comes from its exporting prowess, Mr. Fujita is a master importer. The 66-year-old Mr. Fujita, whose fortune is estimated by some at more than $1 billion, has prospered by taking the most un-Japanese ideas and products and making the Japanese love them. Mr. Fujita clearly benefited from the fact that in an economy where most everything was rationed and imports were severely restricted, those who could navigate the barriers enjoyed generally strong demand and little competition. Fujita & Company prospered by importing, among other things, Christian Dior handbags and other women's accessories To overcome this problem Toys"R"Us enlisted Den Fujita as a local partner. He was at the time the

Toys R Us

Transcript: Charles Lazarus- Founder 1948 Logo Histoy 1965-1970 1970-1971 1997-1999 2007-present Toys R Us was founded by Charles Lazarus in 1948. He started with cribs and baby furniture. Later he introduced infant products and toys for older children. The store became a public company in 1978. As the company grew it started to branch out and make other stores dedicated to different ages of children. In 1983, the company branched out into children’s clothing and in 1996, Babies“R”Us. After Babies R Us the company branched out again and came out with Kids R Us. Management Structure Target Market and Advertising The target market is parents and teachers of younger children, toddlers, and infants In their advertising they are sure to attract their target market by showing their wide variety of inventory for all ages newborn to kids in elementary Toys R Us' biggest competitor is Wal-Mart. Their other competitors include Target, Gamestop, and other Retail Stores Managment Gerald L. Storch- CEO Antonio Urcelay Chairman of the Board and Chief Executive Officer Richard Barry Executive Vice President, Chief Merchandising Officer Clay Creasey Executive Vice President and Chief Financial Officer Deborah Derby Vice Chairman and Executive Vice President I don't wanna grow up, i wanna be a Toys R Us kid. Competition Locations History Toys R Us has over 250 stores in the country. It also has more than 715 international stores and over 180 licensed stores in 35 countries Its headquarters is located at One Geoffrey Way, Wayne, NJ 07470 Finacial Information Toys R Us

Toys-R-Us

Transcript: International expansion toysrus.com launched in June 1998 Following Christmas 1999 trading period where it failed to deliver gifts on time, it entered into a 10 year contract with Amazon.com to be the exclusive supplier of toys on the website Leveraged Buyout Started in 1948 as a baby furniture store, called Children's Bargain Town, in Washington D.C. Owned and operated by Charles Lazarus Soon added toys for infants and older children-cradle gym 10 years later he opened the first Toys"R"Us Name originally made parents angry Geoffrey the Giraffe and Toys"R"Us jingle introduced in 1960 Went public in 1978 1983, first Kids"R"Us sore opened, focusing on apparel;closed in 2003, integrated apparel into most Toys"R"Us stores 1996, Babies"R"Us was opened--leading baby products specialty retailer Went global in 1984; first venture was Canada and Singapore Fortune 500 Toys"R"Us Kohlberg Kravis Roberts, Bain Capital Partners Vorando Realty Trust purchased company for 6.6 billion on July 21, 2005, making it a private company Stock closed at $26.74--all time high almost $45--5 week high of $31 in 2001 2013 Rank: 204 CEO: Gerald L. Storch Headquarters: 1 Geoffrey Way Wayne, NJ. 07470 973-617-3500 Toys"R"Us International operates more than 660 international stores 160 licensed stores in 35 countries and jurisdictions outside the United States Australia, Canada, Germany, Portugal, Spain, Poland, Southeast Asia, Greater China, and the United Kingdom A toy store A History In 2006, Toys"R"Us began integrating its stores by adding a small Babies"R"Us section in most locations Side-by-Side format introduced soon after; vary in size from 30,000 square feet to 70,000 square feet Integration Internet Expansion

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