Toys R Us

21st century
The board of directors knew that pertinent changes must be made to the company’s structure to increase efficiency
and improve their performance. Hence, they mutually decided to nominate Elyer as the new Chief Executive Officer.
Eyler came up with a new strategy and improvised the chain. Owing to the level of competition in the market and
increasing efforts to maximize their market share, Toys R US divided its toy and baby business.

As a result, on 17th March 2005 an association of companies comprising of Bain Capital Partners, Vornado Realty
announced acquisition worth 6.6 billion. The stocks closed at $26.74 on the fiscal year with a notable increase of
63%. Toys R Us now became a private entity.

After privatization, on aug 2011, Toys R Us changed the dynamics of how the store used to run. They decided to
open a few pop up stores the following year and expanded to new locations to explore the opportunities which came
their way.

The Christmas season is the selling season in the West, in an effort to increase their sales, Toys R Us announced that
they’d be opened round the clock till Christmas Eve to address the needs of last minute shoppers and adding
convenience for them to drop whenever they want to shop. This announcement of extended shopping hours came
after snow and freezing rain which led to a nine percent decline of pedestrian visitors, and hiring an extra 45000
employees for meeting the demand of the holiday season. As the toy business is seasonal, a large chunk of company’s
sales and consumer demand is derived during this time.

In addition to this, in the subsequent year, 2014, Toys R Us implemented their ‘TRU Transformation’ strategy which
addressed the problematic areas of business hindering the company’s growth. The strategy focused on improving
the consumer’s overall shopping experience, clearer pricing strategy, improving marketing efforts through sales and
promotion, and a close integration of the retail and online stores. Followed by introducing ‘Toy Labs’ in 2015 where
consumers could interact with the product and test it before purchasing it to improve customer satisfaction. Toys R
Us developed its market in California, New York, Florida and other locations.