In its second-largest acquisition, Amazon buys the company for $970 million.
Toys R Us’s deal with Amazon.com is paying off as the toy retailer saw three times as many sales in the first quarter this year as in Q1 2000.
Sales at ToysRUs.com more than tripled in the first quarter of this year to $29 million from $8 million in Q1 2000. The company says its alliance with Amazon.com allows it to focus on continuing to build its online business and the retailer expects sales to continue to grow rapidly. Toys R Us also reported that its Babiesrus.com business would migrate to the Amazon.com platform this month. Toys R Us had reported significant additional costs for its online business in Q1 2001, which were due to maintaining and operating the Babiesrus.com web site and distribution facility. However, the company expects to eliminate some of those costs when Babiesrus moves to the Amazon platform.