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Toy story Charles Lazarus used his savings to convert his father's bicycle shop into a children's furniture store in 1948. Customer demand convinced Lazarus to add toys, and he renamed the shop Children's Supermart. Lazarus sold his company to Interstate Stores in 1966, but regained control of it eight years later when Interstate went bankrupt. The company's name became Toys 'R' Us (Lazarus thought the backwards "R," although not printed properly here, would grab attention). Large 'R' we With over 1,500 stores around the world, Toys 'R' Us is the undisputed king of the specialty toy retailers. Toys 'R' Us has diversified its operations, opening stores under the Babies 'R' Us, Kids 'R' Us, and Kidsworld names. The company has also opened "superstores" that combine all of its retail offerings into 90,000-square-foot sprawling mega-complexes. However, competition from discount retailers such as Wal-Mart has taken a bite out of the company's market share. Problems arose in 1997 when a federal judge accused the company of violating trade laws. Although Toys 'R' Us appealed the decision, the question remains as to whether it conspired with toy manufacturers to keep the prices of products too high for warehouse clubs. Restructuring: not exactly fun and games 1998 brought on a series of substantial company changes. President and COO Bob Nakasone became CEO. Upon taking office, he declared that inventory would be cut by $500 million by the turn of the century. The huge restructuring would also mean store closures (mostly in Europe), substantial redesign work, and the consolidation of some franchises. 1998 also brought about the official failure of the company's Concept 2000, a software selling strategy. Doggedly determined, Toys 'R' Us tried repeated renovations of the store layouts, and ended up confusing and frustrating cutomers. A grim year for the giraffe Despite the company's financial perseverance, 1998 was an indisputably difficult year. Toys 'R' Us shares crashed to a 10-year low. That holiday season stores ran out of popular games due to the company's refusal to order more, even in the face of warnings from manufacturers. Investors fumed over the company's multi-million dollar restructuring bills and substantial downsizing. Analysts blame the company's flop on poor planning and a lack of foresight. While the toy industry rapidly shifted in the 1990s - kids began buying fewer traditional toys and more electronic and digital products - Toys 'R' Us remained stoic. It relied upon its usual sales methods and merchandise. What do you mean "Web site?" While Toys 'R' Us tried electronics and videos in the late 1980s, it missed the opportunity to swell with the boom of computers and the computer-game market. It also missed its chance to be No. 1 in cyberspace. The Internet-only eToys Inc. launched in October 1997, and was able to build a name for itself and seize market share in the eight months until Toys 'R' Us got its own site together. In April 1999, in an attempt to play catch-up, the company announced that toysrus.com will henceforth operate as a separate company with its own leadership. Toys 'R' Us has invested $80 million in the venture, and Benchmark Capital, a Silicon Valley VC firm, committed an undisclosed amount to the project (rumored to be at least $10 million). The new unit took a huge blow when the agreement with Benchmark fell through in August 1999 and the president of the online venutre, Robert Moog, resigned. During the record-setting 1999 holiday season, toysrus.com was unprepared for the traffic. Bombarded with so many customer requests that the site crashed repeatedly, numerous customers had to be turned away. Not all of the company's problems were online that year. It also had trouble fulfilling orders, even those made weeks before the holidays when toysrus.com was guaranteeing on-time delivery. When it rains... Toys 'R' Us CEO, Robert Nakasone, resigned in August 1999 amid flagging profits and whispers of an outmoded sales model. The company's profits did not increase between the third quarter of 1997 and the first quarter of 2000. Re-building blocks In January 2000 John Eyler took the CEO position, and is instilling hope in investors that Toys 'R' Us will be able to fight off Wal-Mart by superior customer service, greater selection, and exclusivity deals with toymakers. Eyler is currently involved in a lawsuit with former employer FAO Schwarz. FAO claims that Eyler, its former chairman and CEO, violated his contract by working for a competitior within two years of leaving them. Toys 'R' Us and FAO considered merging in 1999, though no deal was reached. FAO names Toys 'R' Us in the lawsuit, claiming the companies agreed to not solicit or hire senior employees from each other for two years. Toys 'R' Us denies that they or Eyler acted improperly. Despite the past, Toys 'R' Us has had some success on the internet. In May 2000, the company announced that it was doubling the size of its toysrus.com staff, and the expansion should be complete by summer 2001. The company's commitment to the Internet was further enhanced when it announced that it would feature a Nickelodeon boutique on its site, which will carry toys, video games and CD-ROMs tied to Nickelodeon's popular animated series. Toys 'R' Us also has marketing agreements with Animal Planet, Home Depot, and OshKosh B'Gosh, and in 1999 aquired educational toy chain Imaginarium. Another sign of high hopes for the twenty-first century is the company's expansion. In Japan alone the company opened 15 stores in 2000, and plans on adding 10 each year.
Toys 'R' Us has entry-level opportunities in both store management and its corporate regional offices. For a descriptive list of job offerings, as well as the appropriate contact names and addresses, consult the company's employment web site, located at www.tru.com. Resumes can be filled out online, emailed, faxed, or sent by postal mail. Toys 'R' Us accepts resumes by regular mail at the corporate headquarters in Paramus, NJ, but applicants should send resumes directly to the regional site at which they are interested in working. Applicants must successfully pass an "admission test," which employees describe as "not very stressful."
Adults in toyland Toys 'R' Us employees benefit from a "well-structured" training program that affords them "a wealth of technical knowledge as well as hands-on interaction." The training is "crucial to preparing them for their careers." Insiders also enjoy the "informal environment," "flexible" work schedules, and a corporate organization that "emphasizes results, not rules." The biggest draw, however, may be the toys themselves. Employees love getting the chance to play with "the newest and coolest toys" as well as feeling that they are "making kids happy." Pleasing people Insiders praise Toys "R" Us employees, calling them "very nice" and "the main reason" why they "stay year after year." Moreover, "the management team" is described as "first class," "wonderful," and "friendly." Although the busy holiday season can "be hectic and overpowering at times," one insider admits that the "rest of the year is not too bad." The dress code at Toys "R" Us is simple: "blue TRU shirts and black plants." Another insider adds, "you can get away with brown or black shorts during the summer if it's really hot." Toying with hiring practices As far as being hired, insiders advise applicants to "be prepared to describe a difficult situation" and "how they resolved it." Interviewers often ask about "a conflict you might have had with a superior and how you dealt with it." Although interviews are rigorous, they aren't often stressful. "You have to remember we are playing with toys, after all," says one puckish insider.
Human Resources
Store chains;Toys;Children's apparel;Sporting goods;Accessories
Caldor;Dayton Hudson;F.A.O. Schwarz;Zany Brainy More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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