Toys “R” Us Inc. Chief Executive Officer Gerald Storch will step down following a drop in holiday sales at the world’s largest toy-store chain.
Storch, 56, joined the company in 2006 after Bain Capital Partners LLC, KKR & Co. and Vornado Realty Trust purchased Toys “R” Us for $6.6 billion. He will remain chairman and stay on as CEO during a search for his replacement, the Wayne, New Jersey-based company said today in a statement.
While Storch improved profitability, the chain has struggled to boost sales amid competition from Amazon.com Inc. and discount retailers Wal-Mart Stores Inc. and Target Corp. The company filed paperwork in 2010 for an initial public offering and has yet to issue shares.
Storch declined an interview request, according to Kathleen Waugh, a spokeswoman.
Holiday sales in the U.S. from November to December declined 4.7 percent, while revenue from its international unit sank 6.4 percent. That came after total sales fell in the previous five quarters. Over the past 12 months through October, revenue declined 1.9 percent to $13.7 billion.
Storch, a former Target executive, led an effort to remodel stores in the U.S. by combining Toys “R” Us stores with locations from its Babies “R” Us chain. The company now has more than 1,500 stores globally with 870 in the U.S.