March 22, 2012, 1:02 PM

Toys ‘R’ Us hits $1 billion in annual web sales

E-commerce increased 28% last year while total sales remained flat, the retailer says.

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Toys ‘R’ Us Inc. can claim a new milestone for its e-commerce business: $1 billion in annual sales.

For the year ended Jan. 28, Toys ‘R’ Us, No. 29 in the Internet Retailer Top 500 Guide reported:

  • Online sales reached $1 billion, up 27.9% from $782 million in 2010.
  • Total sales grew 0.3% to $13.90 billion from $13.86 billion.
  • Comparable-store sales declined 1.7%
  • Net earnings decreased 9.6% to $151 million from $167 million.

The web accounted for 7.2% of total sales compared with 5.6% in 2010.

Over the last several years Toys ‘R’ Us has purchased several e-commerce companies such as BabyUniverse.com and eToys.com. Today Toys ‘R’ Us sells online at Toysrus.com, Babiesrus.com, eToys.com, FAO.com and BabyUniverse.com.

With more e-commerce diversity, Toys ‘R’ Us expects annual web sales to reach $1.6 billion in web sales by around 2016, CEO Jerry Storch told attendees in June at the Reuters Global Consumer and Retail Summit in New York. "I'd be disappointed if we didn't do more than that," Storch told attendees.

Toys ‘R’ Us doesn’t break out quarterly web sales but for the fourth quarter did report:

  • Total sales declined 0.8% to $5.92 billion from $5.97 billion in 2010.
  • Comparable-store sales declined 1.1%.
  • Net earnings increased 3.9% to $343 million from $330 million.

“During the year we further invested in and strengthened our omnichannel and Internet capabilities, providing increased speed and multiple ways by which customers can now order and receive products,” Storch says. “We are also pleased with the performance of our international segment, where we are implementing our expansion strategy and broadening our reach in emerging economies that are experiencing growth and rising incomes.”

The IRCE $200 early-bird discount expires March 31!

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