April 20, 2011, 9:41 AM

Toys ‘R’ Us opens a dedicated e-commerce fulfillment hub

The Reno, NV, facility will total 300,000 square feet.

Mark Brohan

Research Director

Lead Photo

One way Toys ‘R’ Us Inc. is supporting its burgeoning e-commerce program is by opening another dedicated distribution center for fulfilling Internet orders.

This July, Toys ‘R’ Us, No. 37 in the Internet Retailer Top 500 Guide, will open a new 300,000-square-foot distribution center near Reno, NV.

The center, which will eventually employ about 120 workers and another 230 part-time workers during the peak holiday season, will fulfill orders for Toysrus.com and Babiesrus.com. “As more consumers enjoy the simplicity and ease of online shopping, Toys ‘R’ Us continues to invest in e-commerce enhancements to advance customer service and satisfaction across all shopping channels,” says CEO Jerry Storch. “We believe the facility will play an important role in further accelerating our company's online business growth and order fulfillment.”

Currently Toys ‘R’ Us does web order fulfillment in-house at its other facilities.

With a dedicated Internet hub for pick, pack and ship, Toys ‘R’ Us will be able to process and ship most e-commerce orders in the western U.S. in about two business days, the retailer says.

The web is the fastest-growing channel for Toys ‘R’ Us. For the year ended Jan. 29, Toys ‘R’ Us reported:

  • Web sales increased year over year 29.9% to $782 million from $602 million.
  • Total sales grew 2.2% to $13.86 billion from $13.56 billion in 2009.
  • Comparable-store sales increased 1.7%.

Internet Retailer projects that the web accounted for 60% of growth across all channels last year.

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