Toys R Us: Overview and analysis

Toys R Us: Overview and analysis Toys R Us is a chain store specialized in toys, created in 1948 in the United States of America by Charles Lazarus. The company has been bought in 2006 by American and English investment funds (KKR, Bain Capital Partners LLC and Vornado Reality Trust). Today, there are 1566 stores all around the world. We can count 849 stores which are implanted in its origin country that is to say is the USA and 717 stores in 34 others countries. The company is the world leader and owns the biggest store of toys on Times Square in New York with 10 000 m ². ToysRUs has been developed in France in 1989 and we can count today 42 stores which Paris la Dà ©fense store is the biggest ToysRUs of Europe. On the French market, the company is also the leader of the distribution of games/toys and detains 13.2% of the toy market share. ToysRUs leadership is due to its staffs passion, its daily commitment toward its customers and its ability to be sensitive to its employees needs like training and such. Furthermore, there is a strong team spirit and human relationship which is simple and user-friendly. The following part is based on the information you can find on the official website of the brand. (toysrus.com) Key figures ToysR Us France: 42 stores Average area sales store: 2600m ² More than 10 000 references More than 500 suppliers 1524 employees Toys R Us developed its innovative own brand in each universe. For instance, the most popular are Bruin (first age toys and childcare articles), FastLane (boys toys), You Me (Dolls), Just like Home (kitchen), Stats (outdoor toys) and Universe of Imagination (creative play). ToysRUs Missions: Toys RUs has to offer the family a full range of toys, leisure and childcare in a magic universe. Its priorities are about children, customers, staffs, grow and make people grown. ToysRUs its choice: indeed the company propose a variety of articles which correspond to peoples needs ToysRUs its novelty: the company anticipate childrens requests and needs in order to offer them products which follow trends, the news, and the environment. ToysRUs its advice and expertise: with 50 years of experience in the world, and 20 years in France, ToysRUs has developed its expertise on the field by selecting toys up-stream and giving advice with a goal of childrens happiness. ToysRUs its service: the company pays attention to customers satisfaction. ToysRUs tries to offer services adapted to children and parents. For instance service birth list, loan strollerà ¢Ã¢â€š ¬Ã‚ ¦ Toys RUs Values: PASSION Because we love our profession and we work to serve children. TEAM SPIRIT Because complicity exists with our customers but also with our teams. COMMITMENT Because we have the choice of products and the quality service for children is something important. CONFIDENCE Because relationship with our customers is based on a real knowledge of our products. RESPONSIBILITY Because our wish is to share something together: childrens welfare. Those values are the official ones set by the firm. ToysRUs Strategy: The company strategy is focused on service and especially on toys selection. ToysRUs always tries to anticipate on the trend and locks its orders before its competitors. It allows ToysRUs to have a high negotiation power with its suppliers. Another point of its strategy is to practice low prices compared to its competitors in order to make its customers more loyal. Moreover, ToysRUs has a development strategy which consist in opening news stores in new strategic places in order to increase its turnover. Finally, the company has adopted a multichannel strategy by creating a website so as to sell its toys for people who live far from a store. ToysRUs Position: To face up to its competitors, ToysRUs has decided to change its position. In this way, in 2000 the company developed a concept of entertainment more transverse with a large range of products like video games, creative leisureà ¢Ã¢â€š ¬Ã‚ ¦This diversification allows ToysRUs to sell products throughout the year. The company positions itself as the largest toy retailer by offering a larger selection of toys than any other retailer at the lowest prices which allows ToysRUs to increase its customers loyalty. ToysRUs targets: The company targets anyone important for the child like parents, grandparents, godfathers or siblings with any income. Toys Market: French people are the biggest toys buyers of Europe before England and Germany. In 2009, the toy market has increased of 2.7% in France and represents 3 billion euros, more specifically 235 euros a year a child. This market grows up about 10% every years for ten years. ToysRUS Competitors: There is a high competition between specialists and supermarkets. Specialists represent 44.9% of the market share whereas supermarkets own 40.9% of the market share. We notice that the market share of the supermarkets tends to decrease that benefit from specialists. Supermarket competitors: Carrefour E.Leclerc Auchan Specialists competitors: La Grande Rà ©crà © King Jouet Jouet Club Jouet Land We forgot to point out an other important competitor which is Internet! Indeed more and more people buy on the Internet. The mains Internet competitors are Ebay, Priceminister, avenuedesjeux.com, eveiletjeux.com or rueducommerce. SWOT Analysis: Strengths : Own brand which represents 20% of the turnover. Good Location, near the RER A ans near the Bay 1 mall World leader, Large distribution networks, Strong reputation, High visibility thanks to the stores opening all around the world Store layout shaped path A large references Low prices Weeknesses : Few animations, Few creative workshops, few birthday organizations which only exist in the USA. Highest prices than supermarkets and on the Internet. Stock problems Not enough video games Opportunities : Located near a shopping mall so the company can capture the flows of the shopping center. Threats : Commercial sites on the Internet Used sells like flea market ToysRUs Communication ToysRUs has created the  « megapack  » concept during the holiday season and which allows to benefit from a reduction of 30 to 50% of the first article. Ways of communication : Press Displays Partnership Direct mail : to reach our target tat home Radio: to capitalize on the significant time our target spends listening to the radio, most often while driving Television: to capture the attention of our target, who spends an average of 12 hours a week watching TV http://www.toysrus.fr/cms_widgets/20/95/209559_assets/TRU_spacer200.jpg