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TOYS 'R' US ANNOUNCES EXPANSION PLANS FOR 1994; COMPANY ALSO CREATES FRANCHISE DIVISION TO FURTHER ACCELERATE GROWTH

 PARAMUS, N.J., Jan. 11 /PRNewswire/ -- Toys "R" Us, Inc. (NYSE: TOY) today announced the largest expansion program in the company's history. During 1994, Toys "R" Us expects to open 115 new company-owned toy stores and in addition it will franchise other stores in select international markets.
 Charles Lazarus, Chairman, said, "We see a tremendous opportunity for Toys 'R' Us to build world market share over the next few years and we intend to aggressively build our worldwide toy retailing business, capitalizing on opportunities to strengthen our presence in current markets and to enter new markets."
 Mr. Lazarus said that Toy "R" Us recently created a franchising division to enable the company to accelerate the expansion of the Toys "R" Us concept throughout the world.
 In that regard, the company announced that it had entered into a franchise agreement with Al Futtaim Sons Co., an experienced entrepreneurial family, in the United Arab Emirates, under which Al Futtaim Sons will operate Toys "R" Us stores in the United Arab Emirates, Qatar, Bahrain, Oman, and Kuwait.
 Another franchise agreement has been signed with a major Saudi Arabian group for the development of toy sores in Saudi Arabia.
 "Through these franchise agreements, we will be using the resources of highly respected and successful local business people throughout parts of the world that would not normally be developed by Toys `R' Us itself for many years," Mr. Lazarus said. "All of the franchise stores will be operated in accordance with Toys `R' Us standards."
 Mr. Lazarus said that under the terms of the first two agreements, Toys "R" Us will receive significant royalty and other related service fees over the initial 12 year franchise period. These fees are anticipated to provide meaningful cash flow and earnings for their international division.
 "We believe that the franchising concept will enable us to bring additional countries into the Toys `R' Us family on an accelerated basis," Mr. Lazarus concluded.
 These franchise stores are in addition to 45 new toy stores that will be opened in the United States and 70 new Toys "R" Us stores that will be opened in other countries during 1994.
 Toys "R" Us also announced that its Board of Directors has authorized the investment of up to $1 billion to buy back share of the company's outstanding common stock over the next several year.
 Mr. Lazarus said, "Despite the aggressive expansion plans in 1994, Toys 'R' Us is generating substantial excess cash flow. We believe that in addition to investing in our on-going business, the repurchase of Toys 'R' Us common stock, from time to time in the open market or in negotiated transactions, will increase shareholder value."
 Toys "R" Us is the world's largest and fastest growing children's specialty retailing chain currently operating 581 toy stores in the United States, 234 international toy stores and 217 Kids "R" Us children's clothing stores.
 -0- 1/11/94
 /CONTACT: Lawrence A. Rand of Kekst and Company, 212-593-2655, or Michael Goldstein of Toys "R" Us, 201-599-6981/
 (TOY)


CO: Toys "R" Us, Inc. ST: New Jersey IN: REA SU:

MP -- NY009 -- 0851 01/11/94 08:52 EST
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Publication:PR Newswire
Date:Jan 11, 1994
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