Toys R Us has recommitted to a five-year strategic goal of strengthening the foundation of the company to increase revenue and profits. The TRU Transformation, as it was presented during the company's 2014 fiscal review, also included the next steps for 2015, including a rennovation of the customer experience.
Although America's largest toy store had some setbacks in 2013, when it lost $1 billion in revenue, the company has gone back to the basics by focusing on improving customer loyalty and the in-store experience.
Chairman and CEO Antonio Ureclay said the company had made great strides in growing global online sales, strengthening the omnichannel fulfillment model, improving U.S. margins, growing the retailer's international presence, and improving customer satisfaction.
"Our strategy remains the same, but will evolve in 2015 as we continue to strengthen the foundation of the company in order to achieve sustainable growth in the future," Ureclay said. "We anticipate this will be another year of significant change and we will take aggressive steps in the months ahead to further right-size the cost structure of the business. This includes designing a more streamlined organization that will allow us to create greater operational efficiencies across our global organization."
Toys R Us will concentrate on three key objectives for 2015. The first objective will be to optimize the e-commerce business, which is worth $1.2 billion. That includes expanding in-store pickup and ship-from-store execution, especially during the holidays. And mobile, which drives 57 percent of all e-commerce traffic in the United States, will be advanced to better serve the needs of customers.
Another key objective will be growing the company's international presence. Already in 36 countries, Toys R Us wants to expand the number of stores in China and Southeast Asia.
And finally, Toys R Us pledges to create a more efficient, streamlined organization. The retailer recently refinanced $1.4 billion of its near-term debt and now has no significant outstanding payments due until 2017.
Last fall the company launched a layaway program and improved its customer loyalty program to prepare for the holiday shopping season.
-See this Toys R Us press release
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