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 books to delivering merchandise in customers' homes

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 grammatical incorrectness, Lazarus knew it was an attention-getter.

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.

• TRUI was incorporated in the state of Delaware, USA.

Background note …

• 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 …• 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 whole family, and personalize them.

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 Toys“R”Us, Inc. for $6.6 billion.

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 additional stores that follow this integrated format continue to open around the country.

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 workshop was to improve the communication skills of the employees.

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 attracting and retaining talent from diverse sections of society

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...