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Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?

To: Irish who wrote (7052)	6/6/2002 3:03:24 AM
From: Skywatcher	Respond to of 7111

Associated Press Toys "R" Us plans more competitive prices, expects market share to grow By LINDA A. JOHNSON AP Business Writer TRENTON, New Jersey (AP) -- Toys "R" Us will cut prices on about 200 popular items to better compete with discount stores, which sell those toys at cost or less to attract customers, the company's top executive told shareholders at their annual meeting Wednesday. The Paramus-based retailer of toys, children's clothes and accessories also plans to resume featuring its talking-giraffe mascot, Geoffrey, in advertising targeting parents who grew up with the character. It also will begin testing new business strategies as part of an effort to increase its toy market share, now about 17 percent, to 20 percent, as it nears the end of a costly restructuring and store remodeling plan that was partially responsible for losses in two of the last three quarters. "Every year, we're going to try to launch a new business concept to see if we can grow our business," John Eyler, president and chief executive officer, told investors and analysts at the meeting in New York. Toys "R" Us is the No. 2 U.S. toy seller, behind Wal-Mart Stores Inc. (NYSE:WMT - News), but is No. 1 worldwide because 511 of its 1,604 stores are in other countries. The first new concept, successfully tested in four Washington, D.C. area Giant supermarkets last summer, involves setting up mini-Toys "R" Us stores in grocery stores that are part of the Dutch Ahold supermarket conglomerate. That will be expanded to dozens more stores in a wider area this year. "We think this has potential to grow to 1,500 to 2,000 stores," Eyler said. The second idea is to put mid-size stores combining the company's biggest divisions -- Toys "R" Us, Kids "R" Us and Babies "R" Us -- in small markets where the company presently has no operations. Those stores will be named "Geoffrey," for the mascot. The first four will open this summer, but the company would not disclose their locations. Eyler said the company will be able to make up the price cuts on the most popular toys because it makes higher profit margins on its growing stable of exclusive toys, which now account for about 20 percent of sales. One example is the Animal Alley line of plush toys, barely two years old and already the top-selling brand in the world. The chairman said that by the start of the holiday shopping season this fall, the company will have completed remodeling of all 698 U.S. toy stores in its "Mission Possible" format, which features a racetrack-style layout with products in theme areas. The company has also slashed the number of different toys it carries from about 14,000 to 8,500 this year, allowing more shelf space for the bigger sellers. That enabled the company to boost the percentage of its most popular products in stock from 64 percent a couple years ago to 95 percent now. Eyler said layoffs of 1,900 employees due to closings of less-profitable stores or consolidation of Kids "R" Us and Toys "R" Us stores, announced in January, should improve earnings by $25 million this year and by $45 million next year. He said the first quarter, when the company did better than analysts expected, gives Toys a good start for the year and leaves him comparable with analysts' forecasts of $1.14 in earnings per share for the whole year. SO THE QUESTION IS....WHO'S STAYIN....WHO'S LEAVIN????????? cc