Toys 'R' Us Japan to merge with Toys 'R' Us Asia
Toys 'R' Us Asia has agreed to unify its Greater China and South-East Asia business with its Japanese unit.
Based in Hong Kong and in partnership with the Fung Retailing Group, the enlarged joint venture (JV) will be able to maximise the benefit from the integration and the children consumption segment in Asia.
Fung Retailing Group is a member of the Fung Group.
Fung Group chairman Victor K Fung said: "Toys 'R' Us is one of the most recognised brands in the world, and our goals for the combined business are to leverage the synergies between the businesses and delight a new generation of consumers with significant purchasing power across the region.
"The inclusion of Japan's Toys 'R' Us into Toys 'R' Us Asia will allow the management team to leverage and create opportunities to more effectively manage inventory management, logistics and sales channels across Asia, as well as expand omnichannel retailing, thereby achieving greater efficiencies and benefitting from each other's experience and expertise.”
Introducing Toys 'R' Us to Asia in 1985 under a licensing agreement with the US-based Toys 'R' Us Inc., Fung Retailing has since opened 250 outlets. Upon completion of the merger, Fung Retailing will own approximately 15% of the JV.
Toys 'R' Us chairman and CEO Dave Brandon said: "This expansion marks another milestone for Toys 'R' Us as a global company.
"The businesses are highly complementary with regards to markets, products and technology, and we believe that the strategic decision to consolidate them will allow us to streamline operations and accelerate innovation to continue to deliver a world-class experience for our customers in Asia.
“We look forward to working more closely with Fung Retailing, our trusted and valued business partner, in our mission to be the best toy and baby product retail company for the world."
Toys 'R' Us Asia currently operates 223 stores in China and the South-East Asian markets comprising Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. It licenses an additional 34 stores in the Philippines and Macau, and 160 additional stores in Japan to establish a pan-Asia network of specialty toy chain outlets.
Image: Toys 'R' Us in Ocean Terminal, Tsim Sha Tsui, Hong Kong. Photo: courtesy of Wpcpey via Wikipedia.