Toys R Us Sold Essay -- essays research papers

Toys R Us is the worlds largest childrens specialty retailer. The partnership operates tamper stores throughout the world and is publicly traded on the New York stock certificate Exchange. In this paper I will give a brief company history, cite where the competitive environment is coming from, strategies that were attempted, and where they stand today.Toys R Us founder Charles Lazarus opened the first Toys R Us store in Rockville in 1957. The company went public in 1978 and evolved into a powerful international toy vendor, with Kids R Us, Babies R Us and Toyrus.com. It operated 638 stores in the United States and 579 outside the country.     Although Toys R Us participates in the Specialty Retail industry, it has identified its major competitors not as other specialty toy retailers, but as department and discount stores, including Wal-Mart, Kmart and Target. Within the specialty retail segment, Toys R Us competes against FAO Schwartz and K-B Toys.The discount and department stores against which Toys R Us competes do not break down their revenue by product segment, so it difficult to gauge the food market share of toys that these stores generate. However, as the company moves into additional segments, including childrens apparel, it will be competing against these retailers in other segments, as well. In the specialty toy retail segment, Toys "R" Us enjoys a significant market share over both K-B Toys and FAO Schwartz.     Toys R Us Inc. revolutionized the toy industry more than four decades ago with its big-box, low-price stores. Toys R Us may be interchangeable with toys, but also has its fastest-growing business in Babies R Us, which sells childrens clothes, furniture and accessories. The company opened freshly stores and planned to build new additional Babies R Us stores.      Toys R Us ventured into a partnership with Amazon.com to improve the e-commerce division of their business. I nternet retailing was cutting into the profits and the market share of Toys R Us. This financial way out was the reason they the needed to improve and establish themselves in the Internet market. This Internet market was clearly the way the trend was going, as indicated by the growth of retailers such(prenominal) as eToys.com and SmarterKids.com. Toys R Us needed to establish itself in this market, since bricks and mortar retai... ...strategy when the initial downsizing failed to take them out of the red or gain second lost market share.In closing Toys R Us needed capital and new ideas. They final option was to sell and bring in new investors with new ideas. The sale has already had a good sign. After the report of the sale shares jumped 5% on the New York Stock Exchange. This could be the start of their comeback.References1.      one-year Report.(2001). Montvale, NJ Toys R Us, Inc.2.     Annual Report.(2003). Montvale, NJ Toys R Us, Inc. 3 .     Elder, L.(1999, December 3). Many happy returns. Houston Business Journal4.     Raven, M. E. (2000, October). Seventh Circuit affirms FTCs ruling that Toys "R" Us led illegal boycott. Corporate Counsel (7), p. A6.5.     Bhatnagar, P.(2005). Group To Buy Toys R Us For $6.6B. CNN/Money.6.     Barbaro, M.(2004). Toys R Us Restructuring. Washington Post. 7.     Wettlaufer, D.(1999, August). Is Toys R Us Toying with E-commerce? http//aolsnapshot.fool.com/ intelligence/1999/toy990817.htm