Toys R Us is unifying its Japanese business with its ventures in Greater China and Southeast Asia.
Under a new JV agreement with Hong Kong-based Fung Retailing, Toys R Us Japan, which has 160 stores, will be consolidated into Toys R Us Asia.
The merged business will now be roughly 85 per cent owned by Toys R Us, with the balance held by Fung Retailing. The two companies have been working together since 1985. Toys R Us Asia and its subsidiaries have 223 stores in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. Toys R Us Asia also licenses 34 retail locations in Macau and the Philippines.
The combined company’s headquarters will be in Hong Kong, while a regional office will continue working in Kawasaki, Japan. The retailer says the consolidation will allow the company to streamline, as well as accelerate innovation.
Toys R Us Asia Pacific president Andre Javes will continue to have oversight of the combined businesses, as well as Toys R Us Australia.
International same-store sales for Toys R Us grew 1.2 per cent in the second quarter of last year, driven by strength in the Asia-Pacific market. However, international sales eased 2.5 per cent in the third quarter.
