Gerald Storch will step down as CEO of Toys “R” Us Inc. in the coming days following a drop in holiday sales amid toy price wars from chief competitors Amazon and Wal-Mart Stores Inc.
Storch will remain chairman and stay on as CEO until a replacement is named, according to the company release.
The 56-year-old Storch joined Toys “R” Us in 2006 when toy retailer was purchased by Bain Capital Partners, KKR & Co. and Vornado Realty Trust in a $6.6 billion deal.
The toy retailer posted a 4.7% decline in U.S. holiday sales, and revenue from its international unit decreased 6.4%.
Under Storch’s management sales revenue has slumped for six quarters.
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 has more than 1,500 stores globally with 870 in the U.S.