PARAMUS, N.J., Jan. 30 -- Toys "R" Us, Inc., today announced that it will be reallocating labor in approximately 400 of its Toys "R" Us stores across the United States. As a result, an estimated 700 store management and supervisory positions will be eliminated, effective immediately.
"This is a strategic business decision reached after thorough research and evaluation," said John Eyler, Chairman and Chief Executive Officer, Toys "R" Us, Inc. "These changes will enable us to reinvest a significant amount of management labor expense back into sales associate hours in the stores, as well as to fund an increased amount of sales training for all associates. We've spent the last year improving our in-stock position, pricing perception, operational procedures, marketing and merchandising. In 2003, we'll further intensify our focus on our guests to provide a level of service and sales interaction that will further differentiate us from our competitors."
Mr. Eyler added that the continuing performance improvement of the U.S. toy business is the company's highest priority. "We've found ways to manage our stores more efficiently and to reinvest the savings in ways that are designed to drive guest delight and sales in a very tough retail environment," he said.
The associates affected by the layoffs will receive severance packages, benefits support and referrals to state and local job placement assistance.
Toys "R" Us, one of the world's leading retailers in toys, children's apparel and baby products, currently sells merchandise through 1,599 stores worldwide: 686 toy stores in the United States; 542 international toy stores including licensed and franchised stores; 147 Kids R Us children's clothing stores; 183 Babies "R" Us stores; 37 Imaginarium stores; 4 Geoffrey stores; and through Internet sites at http://www.toysrus.com,
http://www.babiesrus.com, http://www.imaginarium.com and
http://www.giftsrus.com.
