Toys ‘R’ Us has appointed the Former Domino’s Pizza executive- David Brandon as the new CEO and the chairman of the company, who has an excellent logic of IPO to steer the company in the right direction. In the recent years, it is the second major executive appointment that Toys ‘R’ Us has announced; where Antonio Urcelay has served as CEO since October, 2013, and has merely led the retailer’s holiday strategy for just one season.
Brandon will be positioned as the new chairman and CEO on July 1, succeeding former Toys ‘R’ Us' CEO- Antonio Urcelay, who has recently retired from the company.
Previously, former executive Gerald Storch ran Toys ‘R’ Us for several years, after then he stepped down, following a weak 2012 holiday sales performance.
Toys ‘R’ Us’ newly appointed CEO - Brandon said that he has planned to continue with many of those startups. The company needs to position itself, where it is capable to give a tough compete with those online retailers globally. He added that it’s all about performance and business logic execution, and is not even bothered that he is stepping towards hypercompetitive business of selling toys with least retailing experience.
Brandon revealed that when he was appointed as Domino’s Pizza’s executive, he wasn’t a pizza guy either, and asserted that there is a big opportunity for a leader to step in such a situation where in they have to compete on different platforms and challenge the status quo.
In 1999, Brandon joined the company and pioneered as digital ordering at Domino’s, where about 90 per cent orders were taken via phones, and today, it’s about 50 per cent orders that are done via the Internet or mobile phones.
Brandon, referring to the turbulence that e-commerce has brought to shopping habits, said that customers' tastes change now-and-then, and they always opt for different varieties in the services and products that are offered in the market. Brandon described about one of his experiences within an industry sector, and believes that he could bring experience that could be helpful and beneficiary for the retailing business.
Brandon drove Domino's through its IPO in 2004. Additionally, he took Valassis Communications open - it was later acquired by him. Those IPO experience may prove to be useful and may clarify why Toys 'R' Us has appointed a CEO with least experience in the toy business.
Toys ‘R’ Us was acquired in 2005 by Vornado and private-value firms Bain Capital and KKR & Co. for $6.6 billion. At a certain point, the retailer verged on re-entering the public markets; however, those plans were dropped in mid 2013. The new CEO appointment proposes that the Toys ‘R’ Us owner may be interested on a second attempt to take the retailer public.
The holiday season, when Toys 'R' Us creates about 40 per cent of its yearly sales, is particularly tough in estimating the figures. Early this year, Toys ‘R’ Us reported that equivalent same-store sales for the nine-week holiday period slipped 5 per cent in 2014 from the former year, however, net margins have improved.
Brandon believes that the company is going to have its best days in future, and is eager to get started with his new toy retailing business.