Diversification of the company was vital at the time, as the cost of producing candy during World War II was extremely high, due to shortages of necessary ingredients, especially sugar. The brothers took a chance and started selling toys as well under the new company’s name – Kay-Bee Toy & Hobby Stores. By the late 40s, the brothers decided to switch their main focus to toys, as this side of the business proved to be much more profitable than candy. The first retail toy store opened in 1959, in Connecticut.