They could then turn around and sell the items to consumers for little above wholesale cost and still make a profit. Toys “R” Us could buy items in large quantities at a discounted price per item because of the large volume. The most important strategy was buying in quantity in order to sell at a discount. Market Growth and Expansion StrategiesCharles Lazarus’ company developed many strategies to stay ahead in the market and of the competition, if any. The company is listed as common stock on the New York Stock Exchange (see Appendix) and as of March 10, 1998, had 31,700 stockholders on record.ī. Along with the Toys “R” Us toy stores, there are 215 Kids “R” Us stores in the United States, as well as 98 Babies “R” Us stores nationwide.
With 700 toy stores in America and 441 international stores, they are the largest toy store chain in the world. How Toys “R” Us Exists TodayToday Toys “R” Us is more successful than ever.
Toys “R” Us’ Current Status In the Market PlaceA. In later years, Geoffrey the Giraffe would become the company’s “mascot”, and would create a memorable, positive impression with shoppers. This became the distinctive logo for his company. After deciding that the current name of his store still didn’t convey an accurate description of what the store had to offer, which was now primarily toys, he renamed his stores to Toys “R” Us, with the “R” reversed. He quickly realized that he would have to invest in training other people to manage the stores and keep them up and running. Soon after the reorganization of his first store, Lazarus opened another one. He renamed his improved store to Baby Furniture and Toy Supermarket. Not only could he sell the items at a lower price to his customers and still make a profit, but also when a customer chose a particular item, he could deliver it immediately. In his new reorganized store he had several different styles of an item in stock, as opposed to the one or two styles in his original store that had to be ordered from the company after a customer decided to purchase the item. He recognized the efficiency of the supermarket grocery stores and decided to reorganize his store, modeling it after a supermarket. Charles first got the idea for a self-service supermarket while on a trip to New York. As the customers’ kids grew and their needs became more varied, however, he began to sell tricycles, books, and a much wider range of toys. “To begin with, Lazarus stocked only a few infant toys. ” It was at this point that he realized “the customers want toys. His first shop was 40 feet by 60 feet, filled with cribs and baby furniture.Īfter two years of operation, Lazarus realized that many customers had been asking if he stocked baby toys, to which he always replied “no. In 1948, he borrowed $2,000 and started his first business, selling baby furniture. The History of Toys “R” UsDuring the post war years of the late forties and early fifties, Charles Lazarus anticipated the baby boom because many soldiers were being discharged from the Army and were beginning to start families. It was his father’s example as well as his years spent in the bicycle shop that gave him much of his business training. ” Because of his ambitiousness and hard work ethics, Charles decided to go into retailing. He didn’t want to go to college and knew only one thing: “I wanted to work and I wanted to make money. Lazarus was in his early twenties when he left the Army. Charles Lazarus – Biographical Information specifically for you So he quickly changed his business focus to toys and developed his innovative mass-market model just as the baby boom hit.We will write a custom essay on I. He set up a business in baby furniture in the basement of his dad's shop and there he noticed a growing demand for toys - which he said were 'a great kind of thing to sell, because they don’t last that long'. When he returned to Washington after the war he decided to found a 'small business' like his father who ran a bike shop. The American entrepreneur, born on Octoin Washington D.C., served in World War II as as cryptologist. Our thoughts and prayers are with Charles’ family and loved ones." "He visited us in New Jersey just last year and we will forever be grateful for his positive energy, passion for the customer and love for children everywhere. A spokesperson for the company told the Mirror Online: "There have been many sad moments for Toys“R”Us in recent weeks, and none more heartbreaking than today’s news about the passing of our beloved founder, Charles Lazarus.
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