<Li> Finland: 8 </Li> <Li> Iceland: 3 </Li> <P> Charles P. Lazarus (born 1923) founded Children's Supermart (which would evolve into Toys "R" Us) in Washington, D.C., during the post-war baby boom era in 1948 as a baby - furniture retailer . Its first location was at 2461 18th St. NW, where the nightclub Madam's Organ Blues Bar is located . Lazarus began receiving requests from customers for baby toys . After adding baby toys, he got requests for toys for older children . The focus of the store changed in 1957, and Toys "R" Us was born in Rockville, Maryland . Toys "R" Us was acquired in 1966 by Interstate Department Stores, Inc., owner of the White Front, Topps Chains and Children's Bargain Town USA, a toy - store chain related to Toys "R" Us in the American Midwest that would later be combined with the rest of the Toys "R" Us chain . The original Toys "R" Us store design from 1969 to 1989 consisted of vertical rainbow stripes and a brown roof with a front entrance and side exit . </P> <P> At its peak, Toys "R" Us was considered a classic example of a category killer, a business that specializes so thoroughly and efficiently in one sector that it pushes out competition from both smaller specialty stores and larger general retailers . Since the rise of mass merchants like Walmart, Target and Amazon, however, Toys "R" Us has lost much of its share of the toy market, and fell behind Walmart in toy sales for 1998 . </P>

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