May 24, 2006, 12:00 AM

Toys “R” Us selects new outsourcing companies

Toys “R” Us Inc. will continue to outsource the operation of its e-commerce sites. The business is going with GSI Commerce Inc. and Exel. It will terminate its e-commerce and merchandising agreement with Amazon.com by June 30.

Bill Briggs

Senior Editor

Toys “R” Us Inc. will continue to outsource the operation of its e-commerce sites. Leaving Amazon.com behind, Toys “R” Us is going with GSI Commerce Inc. and Exel, a contract logistics provider. Exel is a wholly owned entity of Deutsche Post World Net.

As a result of a decision handed down by New Jersey Superior Court judge Margaret Mary McVeigh in March, Toys “R” Us, No. 31 in the Internet Retailer Top 500 Guide to Retail Web Sites, said it was going ahead with plans to terminate its e-commerce and merchandising agreement with Amazon.com by June 30.

Effective July 1, Toys “R” Us begins a new multi-year commitment with GSI and Exel. Under the long-term agreements, GSI will provide technology, customer service and support while Exel will provide fulfillment services for both ToysRUs.com and BabiesRUs.com. As part of the transition, Toys “R” Us also will relaunch the ToysRUs.com and BabiesRUs.com sites with a new look and more product information.

“Our team has been preparing for this transition for some time,” says chairman and CEO Jerry Storch.

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