Toys “R” Us was founded by Charles Lazarus as Children’s Supermart in Washington, DC in 1948. At first, the company sold only baby furniture. However, Lazarus soon began to receive requests for baby toys, then toys for older children.
The company officially changed its focus and name in 1957, when Toys “R” Us was born. The next year Lazarus sold the business to Interstate Stores, Inc. for $7.5 million. Interstate aggressively tried to expand the brand, but failed, and in 1974 was bankrupt. The company sold off its businesses except the Toys “R” Us brand, and changed its name to Toys “R” Us to reflect its principal business. The original founder, Charles Lazarus, continued to serve as president and CEO.
The company grew and prospered in the 1980’s, opening a discount kid’s clothing store chain, Kids “R” Us.
Toys “R” Us reached $1 billion in sales in 1983 and 15% market share by 1987.
Toys “R” Us grew overseas throughout the 1990’s, opening stores in Israel, Hong Kong, Portugal, the Netherlands, Scandinavia, Sweden, Turkey, Australia, Canada, France, Germany, Spain, and The U.K.
In 1996 the company opened its first Babies “R” Us stores.
In the early 2000’s the company faced increasing competition from Walmart and Target and began to lose money. An expensive remodel and re-launch plan was undertaken, and failed. Toys “R” Us was eventually bought out by a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts, and Vornado Trust Realty in a $6.6 billion leveraged buyout.
Today Toys “R” Us has 875 stores nationally, 625 international stores, operates a portfolio of e-commerce sites, and exclusively operates the FAO Schwarz brand. Toys “R” Us had 13.91 billion in revenue in 2012.
Toys "R" UsToys “R” Us was founded by Charles Lazarus as Children’s Supermart in Washington, DC in 1948. At first, the company sold only baby furniture. However, Lazarus soon began to receive requests for baby toys, then toys for older children.
The company officially changed its focus and name in 1957, when Toys “R” Us was born. The next year Lazarus sold the business to Interstate Stores, Inc. for $7.5 million. Interstate aggressively tried to expand the brand, but failed, and in 1974 was bankrupt. The company sold off its businesses except the Toys “R” Us brand, and changed its name to Toys “R” Us to reflect its principal business. The original founder, Charles Lazarus, continued to serve as president and CEO.
The company grew and prospered in the 1980’s, opening a discount kid’s clothing store chain, Kids “R” Us.
History
Toys “R” Us reached $1 billion in sales in 1983 and 15% market share by 1987.
Toys “R” Us grew overseas throughout the 1990’s, opening stores in Israel, Hong Kong, Portugal, the Netherlands, Scandinavia, Sweden, Turkey, Australia, Canada, France, Germany, Spain, and The U.K.
In 1996 the company opened its first Babies “R” Us stores.
In the early 2000’s the company faced increasing competition from Walmart and Target and began to lose money. An expensive remodel and re-launch plan was undertaken, and failed. Toys “R” Us was eventually bought out by a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts, and Vornado Trust Realty in a $6.6 billion leveraged buyout.
Today Toys “R” Us has 875 stores nationally, 625 international stores, operates a portfolio of e-commerce sites, and exclusively operates the FAO Schwarz brand. Toys “R” Us had 13.91 billion in revenue in 2012.
