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About Toys ‘R’ Us:
Toys ‘R’ Us – One of the Largest Private Retail Companies for Babies and Kids Products in America
Toys ‘R’ us is one of the most popular retail chain of toys and kids products in America. Owning more than 866 stores in US and Puerto Rico, the company also holds its widespread presence across 37 countries as well as jurisdictions of the world with over 750 company-owned stores and 245 licensed ones. Having its proud presence in major countries like Africa, Asia, Europe, and America, the company is still seeking for more locations to expand its reach amongst its potential customers.
Although the company operates it vast portfolio of e-commerce site, the company operates along with its other brands namely Kids ‘R’ us, Babies ‘R’ us, FAO Schwarz and Toys ‘R’ us Express.
Current market value
Being a private sector retail company operating worldwide, Toys ‘R’ us ranks 24th among the American largest private sector companies according to Forbes. In addition, with overall sales revenue of $11.8 billion this year, the company also occupies the 240th rank in the list of Fortune 500 Companies. Traded under the ticker name of TOY, the company holds its registration on the New York Stock Exchange (NYSE).
Moreover, as per the financial analysis of Hoovers, the company shows an operating income of $358 million that accounts for a gross profit of $4,226 million. The market value of the company’s assets today is $6,968 million according to Fortune 500. The major credit for its growth goes to its dedicated team of over 62,000 employees. This makes it a worth investing company for the investors.
The inside story – its origin
A renowned family-owned business, Toys ‘R’ us is one of the most leading toy and baby care megastore worldwide. The very first foundation stone of this company took place in the year 1948 by Charles P. Lazarus. It initiated with the first children super mart in Washington DC and grew to 1500 stores over the years.
The year 1957 marks the origin of Toys ‘R’ us with major focus on baby toys in Rockville. However, in 1966, Interstate Department stores Inc. acquired Toys ‘R’ us that resulted in the creation of a big retail chain with the name of Toys ‘R’ us between 1969 and 1989. The company operates its stores under various banner names namely FAO Schwarz, Babies ‘R’ us and Toys ‘R’ us.
Furthermore, in the year 2005, the renowned masters like Bain Capital, Vornado Realty, and Kohlberg Kravis Roberts acquired Toys ‘R’ us thereby making it a private firm worldwide.
How it operates?
Being the fastest growing retail company of kids and babies products, Toys ‘R’ us currently owns more than 1500 stores not only in United States but also internationally. It is unremittingly striving to become the best retail company for toy and babies products worldwide. Occupying a powerful position in the market the company is eagerly looking for ideal properties on lease to open its new stores either company owned or franchises in different parts of the world.
As per the company’s corporate lease agreement, the minimum tenure of lease remains 15 to 20 years and it can be further extended for 40 years. However, the condition of rent increment says that the company will increase the lease rent after every five years by 10%. Having a cap rate ranging between 5.5 to 6.50%, the company necessitates a minimum investment of $1M to $5M for the interested investors.