966 sales had reached $12 million. He sold his company to discounter Interstate Stores for $7.5 million, with the condition that he would retain control of the toy operation. By 1974 Lazarus' division had expanded to 47 stores and $130 million in annual sales, but the parent had filed for bankruptcy. From 1978 to 1983 earnings grew 40% annually, market share climbed to 12.5%, and the number of toy stores reached 169. The company opened two Kids "R" Us clothing stores in 1983, copying the toy stores' discount formula. Toys "R" Us entered the Japanese market in 1991. In 1993 Toys "R" Us continued its international expansion before Lazarus stepped aside as CEO in 1994. The company opened its first franchise (in Dubai, United Arab Emirates) in 1995. The toy seller paid $376 million for Baby Superstore in 1997 to strengthen its fledgling Babies "R" Us; by 1998 Babies "R" Us had become the largest US baby store chain. Toys "R" Us was passed in US toy sales in 1999 by Wal-Mart. Also that year the company formed subsidiary toysrus.com, but it lost the backing of Benchmark Capital when disagreements over the subsidiary's operational strategy could not be resolved. The company formed a joint venture with Li & Fung Retailing in 1999 to expand its presence in Thailand, the Philippines, and China.In early 2000 the company hired John Eyler away from FAO Schwarz as president and CEO. In addition, troubled toysrus.com received the backing of Japan's Softbank, The Blackstone Group, KKR & Company, and Evercore Partners. Also that year the company sold 32% of its Japanese subsidiary, Toys - Japan, to the public, retaining a 48% stake. Toysrus.com, haunted by its failure to deliver toys in time for Christmas 1999, launched a co-branded Internet store (toys, video games) with Amazon.com later in 2000. The partnership was expanded to include babiesrus.com in 2001. TodayToys "R" Us is rated: No.172 in Fortune 500, No.208 in Hoover’s 500, and listed in S...
