By Jeffrey Gold
The Associated Press

NEWARK, N.J. - Toys "R" Us Inc., battered by price wars from discounters, particularly Wal-Mart, is considering getting out of the toy business.

The nation's second-largest toy retailer behind Wal-Mart Stores Inc. announced plans Wednesday to restructure, but said it is considering selling the toy business outright as part of an effort to dramatically reduce expenses.

The $11.6 billion company is also pursuing a possible spin-off of its fast-growing Babies "R" Us, whose 200 stores sell furniture, including cribs and bedding, and accessories.

The Babies "R" Us division has been the company's growth vehicle, and has not been as vulnerable to discounters, Standard & Poor's credit analyst Diane Shand said in an S&P statement.

The company's U.S. toy division, however, has been inconsistent since the mid-1990s, when Wal-Mart ramped up its toy department as it also dramatically expanded the number of stores.

"Traditional toys have decreased in importance, as children are turning to video games, computer software, sporting goods and music for entertainment at younger ages," Shand said.

Meanwhile, the Toys "R" Us' U.S. revenues fell 4 percent to $6.48 billion. Toys "R" Us has 683 toy stores in the United States and 579 international toy stores.

Toys "R" Us' Greater Cincinnati stores are in Florence; Union Township, Clermont County (near Eastgate Mall); Colerain Township, and Springdale. The company also has a distribution center in Fairfield. The lone Babies "R" Us in Greater Cincinnati is in Forest Park.