Market Overview

Toys R Us: Retail Investors


Toys R Us Inc (TOYS) According to Bloomberg, Toys “R” Us Inc., the retailer that canceled its initial public offering earlier this year, is seeking a $985 million term loan that will refinance some of its bonds, according to a person with knowledge of the transaction.Retail investors and their technology investment priorities focus on achieving key financial metrics: revenue, gross margins, operating income, EBITDA to support their customer engagement and omnichannel strategies. New trends in omnichannel, merchandising, technology strategies and retail analytics, as well its technology enablers; ecosystem of four pillars of multi-platform big data, cloud, social, and mobile will drive transformation shifting to strategic execution of retailing priorities.


The company, which has about $4.4 billion in debt (TOYS:US) coming due by 2018, is seeking to refinance its $950 million of 10.75 percent notes due in July 2017, Wayne, New Jersey-based Toys said in a regulatory filing today. The notes traded yesterday at 106 cents on the dollar to yield 8.9 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Kathleen Waugh, a spokeswoman for Toys, declined to comment on the planned loan. The world’s largest toy seller was taken private in July 2005 in a $6.6 billion leveraged buyout by affiliates of KKR & Co., Vornado Realty Trust and Bain Capital Partners LLC, each of which still owns around 33 percent, with the remainder now owned by management, according to a June 27 report from Moody’s Investors Service via Bloomberg.


Toy’s R US: Embrace Omnichannel

Jerry Storch, CEO of Toys ‘R’ Us Inc. said during his keynote presentation at the conference in 2012 The most successful retail brands will embrace omnichannel retailing, where all sales channels, be they the web, stores, mobile or others, are integrated to serve consumers however and wherever they want to shop. Retailers are positioned to thrive if they can deliver omnichannel promise. The new "My Store" feature on and provides customers with visibility to inventory of the store nearest to them."Ship from Store" allows the retailer to leverage and expand its e-commerce assortment without the addition of inventory to its distribution centers. Toys "R" Us' omnichannel strategy utilizes its social networking sites to bring products and information to its customers offering personalized apps for iPhone to view weekly advertisements, deals and more. Toys "R" Us and Babies "R" Us are connected to over four million fans on their official Facebook pages. In-Store Merchandise Pick Up Locations” are new merchandise pick up kiosks being introduced at all Toys "R" Us and Side-by-Side stores. Customers to scan the barcode on their order confirmation e-mail printout or on the screen of their smartphone, and a store associate will retrieve the order, bring it to the kiosk and help to complete the purchase.


Today’s consumers demand a retail environment that anticipates their individual wants and needs. The omnichannel consumer is modern, smart and resourceful, digitally interactive and well connected, commands real urgencies for enterprise organizations to engage from all retail standpoints. Winning for retailers can mean developing strong full life cycle growth strategies that are not channel specific, but rather consistent across all retail channels to implement new platforms that focus on engagement.


The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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