Diversity training at

Case study in
Training & Development
• Toys“R”Us, Inc. is the world’s leading
dedicated toy and baby products
retailer, offering a differentiated
shopping experience through its
family of brands. It currently sells
merchandise in nearly 1,550 stores,
including 847 Toys“R”Us and
Babies“R”Us stores in the United
States, and more than 700
international stores in 33 countries,
consisting of both licensed and
franchised stores
Background note
• In 1948, 25-year-old Charles
Lazarus turned his dream of
creating a child-oriented
business into a reality.
• A visionary for his time,
Lazarus started a baby furniture
store, Children's Bargain Town,
in Washington, D.C. to cater to
the post-war baby boom era.
• Lazarus filled his store with
cribs and baby furniture and ran
it single-handedly, overseeing
everything from keeping the
Background note …
• Soon, sensing that there was a growing
demand for toys, Lazarus added baby
toys and toys for older kids to his
merchandise.
• In 1957, he opened the first supermarket
in the US dedicated solely to toys and
other kid stuff and named it Toys "R" Us.
• With the opening of his second store, he
settled on the name Toys"R"Us with a
backward "R." Although the name drew
ire from parents and teachers alike for its
Super store for Toys
Background note …
• In the ensuing years, four such stores were
opened. The stores were a business
success, and Lazarus sold them to a
company called Interstate for US$ 7.5
million in 1966 under a deal that allowed
him to continue managing the business.
• In 1974, Interstate filed for bankruptcy.
Lazarus convinced the bankruptcy judge to
let him continue running Toys "R" Us.
• He took complete charge of the stores and
steered them back to profitability. In 1978,
Toys "R" Us became a public company -
Toys "R" Us, Inc.
• In 1983, TRUI opened its first Kids "R" Us
store, which sold clothes and accessories
of the 'KRU' brand as well as of other
brands.
• In 1984, the company ventured abroad,
opening a store in Canada.
• In 1996, TRUI opened the first Babies "R"
Us (BRU) store, in Westbury, New York.
• BRU stocked a wide selection of baby
products like baby furniture, infant care
products, clothing, and toys.

Background note …
 Background note …
• In June 1998, TRUI launched
toysrus.com, an e-commerce
website. In 1999, TRUI acquired
Imaginarium, a chain of 41 stores
which sold learning and
educational toys.
• In early 2001, as part of its
strategic alliance with Amazon,
the company shifted the website
of babiesrus.com also to the
platform of amazon.com.
• In July 2001, TRUI launched its
imaginarium.com website.
Background note …
• At the same time, TRUI
began selling off its
Imaginarium stores in
various locations.
• In October 2002, TRUI
launched another website
called
personalizedbyrus.com,
which allowed customers
to choose from a wide
selection of gifts for the
Background note …

• By January 2004, TRUI had sold off all

the brick-and-mortar Imaginarium
stores, retaining its presence solely
on the internet.
• In July 2005, TRUI went private after
a consortium which included
Kohlberg Kravis Roberts & Co.,4 Bain
Capital, LLC5 and real estate
developer Vornado Realty Trust, who
completed the acquisition of
 A Future Rooted in the
Past
• In 2006, Toys“R”Us, Inc. returned to its roots
of offering toys and juvenile products in one
location when it began renovating existing
Toys“R”Us stores to include a small
Babies“R”Us store within an existing location.
• Expanding on the success of this model, the
company opened its first “R” Superstores,
which combine full-size Toys“R”Us and
Babies“R”Us stores under one roof in late
2007, to provide parents with a true one-stop
shopping experience.
• The company currently operates
approximately 20 “R” Superstores and
 The Workforce Diversity
Program
• TRUI started its workforce diversity
program in the late 1990s. The workforce
diversity program was a three-day
program for managers who had been with
the company for at least one year.
• Initially, the management found it difficult
to discuss diversity with its employees. To
overcome the inhibitions of its employees,
the management decided to begin the
program with LIFO training.
• The objective of the half-day/full-day LIFO
 The Workforce Diversity
Program
• The workshop also aimed to minimize
employee resistance and increase
acceptance of new ideas, create a non-
defensive, open atmosphere, and resolve
differences.
• This was done by asking employees to
identify their superiors'/subordinates'
communication styles. Then, they were
asked to frame orders/requests so that
they suited the superiors'/subordinates'
communication styles...
 The Need for the
Program
• The TRUI workforce diversity program
was necessitated due to factors which
were company-specific as well as
industry-related.
• In the late 1990s, TRUI, which was
considered a 'traditionally' run
company, began facing high levels of
employee turnover; this affected
productivity and service levels and
pushed costs up as well.
• This prompted the management to
include, among other things, a
workforce diversity program for
 The Need for the
Program
• TRUI as well as other retailers have
come to understand the advantages
that a diverse workforce can provide
in customer service.
• Sharon Saunders, Vice President and
Director of Employment, J.C.Penneys
said, "Today, companies are looking
to reflect the demographics of the
communities they serve...
 Conclusion
• TRUI's initiatives to provide a
congenial environment for the
growth and advancement of
minorities and women have found
appreciation from several quarters.
• Importantly, the diversity program
was believed to have helped the
company to keep its attrition rate
under check and create a work
atmosphere based on understanding,
trust, and cooperation...