Fortune.com: “We caught up with John Eyler (who ran FAO Schwartz from 1992 to 2000 and has been CEO of Toys R Us for the past three years) to talk about Wal-Mart, price wars, and the new Elmo…'Today, almost 20% of what we sell is exclusive, whether it is an exclusive G.I. Joe (And Transformers G1 Reissues) or our own Animal Alley plush animals. On exclusive products, we make between 15% and 20% higher margins, then we take those dollars and reinvestment them to lower our prices on the most competitive products,' [explained Eyler].”
Big Thanks to my friend Dave Thornton at Quick Kick's Theatre for the info