Circus World (store)
Encyclopedia
Circus World was a toy store
chain started and operated by Sydney Rubin, later purchased and operated by Rite Aid
, bought by Melville Corporation
in the 1990s, when most of its stores were converted to Kay-Bee Toys
.
) in 1985. Owners of the Playland chain of toy stores at the time, they converted them to Circus World stores. By the end of 1985, they managed to increase sales substantially through renovating stores and improving operations.
Despite the apparent turnaround and record sales, however, the operational improvements envisioned by Bernard Greenman did not come quickly enough, and in 1987 Circus World had lost $3 million for the fiscal year. The next year, same-store sales had become stagnant, and the company lost another $3 million.
Although the chain would become profitable again by 1990, it had failed to differentiate itself from competitor Kay-Bee Toys
, and Greenman management decided to sell its chain of 330 Circus World stores. In August of that year, Kay-Bee
's parent company
Melville Corporation
purchased Circus World, shortly after which most Circus World stores were converted to Kay-Bee Toys
(later renamed KB Toys
).
drug stores, forcing the managers to spend much more office time than was needed, and less time on the floor selling to customers and maintaining inventory
. Unfortunately, because there were many more Circus World stores than Playland, Greenman Brothers forced all stores to adopt the more complex Circus World methods rather than the simpler Playland system. The money Greenman Brothers were forced to pay out to upgrade
the Circus World stores after paying to purchase the chain, plus the money they lost liquidating
unsaleable merchandise, resulted in less operating capital to purchase merchandise for the 1986 Christmas selling season.
Toy store
A toy store or toy shop is a retail business specializing in selling toys. No longer held to the limitations of a physical outlet, many toy shops now do business over the Internet. Many department stores have toy sections.-External links:...
chain started and operated by Sydney Rubin, later purchased and operated by Rite Aid
Rite Aid
Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S....
, bought by Melville Corporation
Melville Corporation
Melville Corporation, formerly based in Rye, New York, was a large retail holding corporation incorporated in 1922 as the Melville Shoe company by Ward Melville. It changed its name to CVS Corporation in 1996...
in the 1990s, when most of its stores were converted to Kay-Bee Toys
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
.
History since 1985
The Circus World chain was purchased by the Greenman Brothers (later Noodle KidoodleNoodle Kidoodle
Noodle Kidoodle was a United States retail chain that sold educational toys from 1993-2000.The company's slogan was "Kids learn best when they're having fun!". The chain operated stores in New York, New Jersey, Connecticut, Massachusetts, New Hampshire, Michigan, Illinois, Kansas and Texas...
) in 1985. Owners of the Playland chain of toy stores at the time, they converted them to Circus World stores. By the end of 1985, they managed to increase sales substantially through renovating stores and improving operations.
Despite the apparent turnaround and record sales, however, the operational improvements envisioned by Bernard Greenman did not come quickly enough, and in 1987 Circus World had lost $3 million for the fiscal year. The next year, same-store sales had become stagnant, and the company lost another $3 million.
Although the chain would become profitable again by 1990, it had failed to differentiate itself from competitor Kay-Bee Toys
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
, and Greenman management decided to sell its chain of 330 Circus World stores. In August of that year, Kay-Bee
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
's parent company
Parent company
A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors; the second company being deemed as a subsidiary of the parent company...
Melville Corporation
Melville Corporation
Melville Corporation, formerly based in Rye, New York, was a large retail holding corporation incorporated in 1922 as the Melville Shoe company by Ward Melville. It changed its name to CVS Corporation in 1996...
purchased Circus World, shortly after which most Circus World stores were converted to Kay-Bee Toys
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
(later renamed KB Toys
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
).
Sale to Melville Corporation
The stores were also run in the same manner as the Rite AidRite Aid
Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S....
drug stores, forcing the managers to spend much more office time than was needed, and less time on the floor selling to customers and maintaining inventory
Inventory
Inventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
. Unfortunately, because there were many more Circus World stores than Playland, Greenman Brothers forced all stores to adopt the more complex Circus World methods rather than the simpler Playland system. The money Greenman Brothers were forced to pay out to upgrade
Upgrade
The term upgrade refers to the replacement of a product with a newer version of the same product. It is most often used in computing and consumer electronics, generally meaning a replacement of hardware, software or firmware with a newer or better version, in order to bring the system up to date...
the Circus World stores after paying to purchase the chain, plus the money they lost liquidating
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
unsaleable merchandise, resulted in less operating capital to purchase merchandise for the 1986 Christmas selling season.