Toys "R" Us 2001 Annual Report

Entering the world of Imaginarium, customers experience the finest learning toys available, presented in a welcoming, nurturing environment. The Imaginarium magic, a winning combination of learning and play -- can now be found in 436 Imaginarium worlds within Toys“R”Us stores as well as 42 freestanding neighborhood stores in the U.S. Equally popular are our 185 locations within our international stores, sometimes called Universe of Imagination, and the online store, Imaginarium.com.

Driving the growth of the Imaginarium division is the universal appeal of learning toys: families everywhere are keenly interested in helping their children develop skills and abilities to prepare them for life. Accomplishing this through toys that combine play and learning has made Imaginarium a leader in the specialty educational category.

Imaginarium shops are the destination for creative play and learning.

Appealing to families in any environment

While its roots are in Main Street U.S.A., the Imaginarium specialty-store atmosphere translates well in our Toys“R”Us stores and online. This ability to provide customers with unique merchandise in a variety of shopping settings enhances the company’s presence in the specialty educational toy market.

In 2001, nearly 300 new Imaginarium locations, most of which were incorporated in our Toys“R”Us stores, were opened in the U.S. By the end of 2002, Imaginarium worlds will be in the majority of Toys“R”Us stores in the U.S., and we’re projecting more than 85 new Imaginarium and Universe of Imagination locations within international Toys“R”Us stores.

Delivering unique products and outstanding service

From its beginnings, Imaginarium has offered exclusive product lines as well as classic and breakthrough brands. With the expansion of Imaginarium worlds in Toys“R”Us locations, private brand merchandise has been expanded.

First Discoveries^TM is an Imaginarium exclusive line of developmental toys that are ideal for enhancing early learning in children. Imaginarium Railway^TM is an Imaginarium exclusive line of wooden trains and accessories. Wooden railway systems encourage imaginative play, which is an important play pattern for a child’s social and emotional development. Imaginarium also features Thomas & Friends Wooden Railway System^TM, LEGO® and many other brands that children and parents have come to know and love.

Outstanding guest relationships

At Imaginarium, our sales associates receive special training and are dedicated to communicating the unique benefits of each product toward the child’s development and play skills. Imaginarium has many innovative ways to help Moms and Dads select the best toys for each developmental stage and age group. Through the Imaginarium Learning System^TM, our private label products are evaluated for shoppers according to seven important characteristics. Each of those qualities is represented by an icon displayed on the product packaging, so parents can see at a glance the skills the toy will help their children to develop.

Now a whole new generation of smart families know what we knew all along: Imaginarium is a magical place where toys inspire, challenge and delight children of all ages. With this momentum, Imaginarium will continue to help the “R”Us family maintain its leading place in the specialty educational toy market.