Toysrus.com sold 5,000 Sony PlayStation 2 devices at the full price of $500 in 23 seconds when the popular toy hit the market last fall, Michael Goldstein, chairman and CEO of Toys R Us, told the National Retail Federation's annual convention in New York today. Goldstein said Toys R Us is pleased with the relationship it created last year with Amazon.com.
"We knew the volume coming from Amazon would be good, but it was fantastic," Goldstein said. As a result of the success on the web, Toys R Us is planning no new major store construction, except in its Babies R Us division. The Toys R Us/Amazon relationship has been mutually beneficial, Goldstein said. Amazon taught Toys R Us about web design and fulfillment and Toys R Us taught Amazon about retailing. "All those extra products Amazon wanted us to carry, we call them 'markdowns.'" Goldstein said.