By Dhanya Skariachan
NEW YORK, Jan 6 (Reuters) - Toys R Us Inc, which is looking to go public, reported a 5.4 percent total sales rise in December at its U.S. unit as it won holiday shoppers with more temporary stores and exclusive toys.
The New Jersey-based retailer, which operates stores under its namesake brand and the Babies R Us and FAO Schwarz labels, opened hundreds of temporary stores and stayed open for 88 consecutive hours through 10 p.m. on Dec. 24 in a bid to win shoppers during the key selling season.
The world's largest dedicated toy retailer said December same-store sales rose by 2.2 percent at its U.S. domestic unit, but fell 5 percent at its international segment, mainly on weakness in markets like the United Kingdom and Spain.
While educational toys found many takers, demand for video-game hardware and software was weak, the company said.
For the company's nine-week holiday period ending Jan. 1, the domestic unit's total sales rose 5.3 percent. Same-store sales also rose 2.2 percent during that period.
Strong holiday sales should help the toy retailer's efforts to go public, analysts have said. The company, however, did not shed any light on the timing of a potential IPO Thursday.
An initial public offering of Toys R Us Inc will most likely happen in 2011, a source familiar with the situation told Reuters last September.
Toys R Us was taken private in 2005 by Kohlberg Kravis Roberts, Bain Capital and Vornado Realty Trust in a $6.6 billion deal. In May 2010, it filed to raise as much as $800 million in an initial public offering.
The company faces tough competition from discounters Wal-Mart Stores Inc and Target Corp, as well as online retailers like Amazon.com Inc.
Toymakers Hasbro Inc and Mattel Inc are also making efforts to sell directly to shoppers, both ramping up their online segments. Booksellers and drugstores have also bolstered plans to grab a bite of the holiday toy sales pie.
In a bid to steer bargain-hungry shoppers away from other rivals, Toys R Us offered more exclusive items this season. [ID:nN20181571
(Reporting by Dhanya Skariachan; Editing by Bernard Orr) Keywords: TOYSRUS/ (dhanya.skariachan @thomsonreuters.com; + 1 646 223 6191; Reuters Messaging:dhanya.skariachan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, Jan 6 (Reuters) - Toys R Us Inc, which is looking to go public, reported a 5.4 percent total sales rise in December at its U.S. unit as it won holiday shoppers with more temporary stores and exclusive toys.
The New Jersey-based retailer, which operates stores under its namesake brand and the Babies R Us and FAO Schwarz labels, opened hundreds of temporary stores and stayed open for 88 consecutive hours through 10 p.m. on Dec. 24 in a bid to win shoppers during the key selling season.
The world's largest dedicated toy retailer said December same-store sales rose by 2.2 percent at its U.S. domestic unit, but fell 5 percent at its international segment, mainly on weakness in markets like the United Kingdom and Spain.
While educational toys found many takers, demand for video-game hardware and software was weak, the company said.
For the company's nine-week holiday period ending Jan. 1, the domestic unit's total sales rose 5.3 percent. Same-store sales also rose 2.2 percent during that period.
Strong holiday sales should help the toy retailer's efforts to go public, analysts have said. The company, however, did not shed any light on the timing of a potential IPO Thursday.
An initial public offering of Toys R Us Inc will most likely happen in 2011, a source familiar with the situation told Reuters last September.
Toys R Us was taken private in 2005 by Kohlberg Kravis Roberts, Bain Capital and Vornado Realty Trust in a $6.6 billion deal. In May 2010, it filed to raise as much as $800 million in an initial public offering.
The company faces tough competition from discounters Wal-Mart Stores Inc and Target Corp, as well as online retailers like Amazon.com Inc.
Toymakers Hasbro Inc and Mattel Inc are also making efforts to sell directly to shoppers, both ramping up their online segments. Booksellers and drugstores have also bolstered plans to grab a bite of the holiday toy sales pie.
In a bid to steer bargain-hungry shoppers away from other rivals, Toys R Us offered more exclusive items this season. [ID:nN20181571
(Reporting by Dhanya Skariachan; Editing by Bernard Orr) Keywords: TOYSRUS/ (dhanya.skariachan @thomsonreuters.com; + 1 646 223 6191; Reuters Messaging:dhanya.skariachan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.