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Sportsrus is a brand extension that may actually result in the flagship stores adding more sporting goods inventory to its mix.

"One thing this venture gives Toys 'R' Us is a tremendous amount of data on what sells in the sporting goods category and what doesn't sell," says Bob Carr, editor of the Sporting Goods Intelligence newsletter. "They can easily analyze the inventory that will fit well into their brick-and-mortar stores and there's plenty of sporting goods product that would fit that mix."

Toys "R" Us assumes no risk in the early part of the venture. The online site's infrastructure and inventory will be maintained by Global Sports, the company which has put up online store fronts for several major sporting goods industry players. Among them: The Sports Authority, MC Sports and Oshman's. That business model has been criticized by some in the business and has not met with a rousing reception on Wall Street either. But the addition of a brand like Toys "R" Us is a coup for Global and its chairman Michael Rubin.

"The idea of a specific online sporting goods store targeted to kids is a valuable concept. Sportsrus.com represents a way to grow the overall sporting goods market through an entirely new channel," says Rubin.. "The ' "R" Us' brand is one of the most recognized and popular names in the world with kids and parents. Their audience represents an important demographic for sporting goods, providing Sportsrus.com with a high-traffic group already comfortable with shopping online."

The venture will launch in the fall. It will also feature links to Global Sports' partnership with Broadband Sports, which manages web sites for more than 250 popular professional athletes, including Kobe Bryant, Mia Hamm, Anna Kournikova and Troy Aikman. The site will also provide exclusive content and resources with tips from leading experts on vital issues facing parents of children entering into organized sports.

As part of the agreement, Global Sports will develop and host the day-to-day technical management of the site, including product fulfillment and customer service support for Sportsrus.com. Merchandising of the products will be coordinated in conjunction with the Toysrus.com buying teams.

"The idea of a specific online sporting goods store targeted to kids is a valuable concept. Sportsrus.com represents a way to grow the overall sporting goods market through an entirely new channel," stated Michael G. Rubin, Chairman and CEO, Global Sports. "Their audience represents an important demographic for sporting goods, providing Sportsrus.com with a high-traffic group already comfortable with shopping online."

Earlier this year, SOFTBANK, the No.1 internet investor in the world became a minority partner. The company recently added two new fulfillment centers and bi-coastal office space, with plans to double its employee base. In July, Toysrus.com launched Babiesrus.com, an online e-resource partnership with the No. 1 Juvenile retailer in the world, Babies "R" Us. According to Media Metrix, in 1999 Toysrus.com became one of the fastest growing e-commerce sites on the internet and continues to consistently be ranked as the No. 1 online toy site in visitor traffic (Media Metrix, May 2000).