Fewer Lost Toys

Toys “R” Us (Paramus, N.J.) has announced that a large-scale store remodeling program conducted during the retailer's first quarter helped produce a net loss for the period ending May 4, 2002.

But a marked sales increase in those remodeled stores, plus cost-cutting initiatives implemented during the quarter, helped reduce losses versus a year earlier. The retailer posted a net loss of $4 million (or two cents a share) during the period, as opposed to $18 million (or nine cents a share) a year ago. total sales were up nearly 2 percent.

“Sales at our U.S. toy stores were somewhat soft primarily due to weakness in our outdoor seasonal categories, and a pronounced slowdown in the video business in April,” said ceo John Eyler.

While sales in the company's 700 U.S. toy stores slipped 2 percent during the quarter, sales in the remodeled stores were 7 percent higher on average. Toys “R” Us expects to have its stores remodeled by the next holiday season. The remodeling features easier consumer navigation and better product display.