|HONG KONG, CHINA – 3 May 2017 – Toys”R”Us Asia Ltd has entered into an agreement to unify the Toys”R”Us business in Japan with the company’s business in Greater China and Southeast Asia. Headquartered in Hong Kong and in partnership with the Fung Retailing Group, the enlarged Toys”R”Us Asia Joint Venture business will be advantageously positioned to maximize the synergies arising from the integration and more effectively tap the fast growing Asian children consumption sector.
Toys”R”Us Asia currently operates 223 stores in Greater China and the Southeast Asian markets covering Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand and licenses an additional 34 stores in the Philippines and Macau, and will add 160 stores in Japan to form a pan-Asia network of specialty toy chain stores.
The Fung Retailing Group is a privately-held entity and a member of the Fung Group. The Chairman of the Fung Group, Dr. Victor K. Fung, said, “We have been partners in the Toys”R”Us business in Asia for more than 30 years and are pleased to expand this relationship to include Japan. Toys”R”Us is one of the most recognized 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 omni-channel retailing, thereby achieving greater efficiencies and benefitting from each other’s experience and expertise,” added Dr Fung.
Toys”R”Us was first introduced to Asia by Fung Retailing in 1985 under a licensing agreement with Toys”R”Us, Inc in the United States. Over 250 stores have been opened since then. After the merger with Toys”R”Us Japan, Fung Retailing will own approximately 15% of the enlarged joint venture.
“This expansion marks another milestone for Toys”R”Us as a global company,” said Dave Brandon, Chairman and Chief Executive Officer, Toys”R”Us, Inc. “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 products retail company for the world.”
“We have seen growth in expenditure on children products in recent years, driven primarily by Asia’s economic growth, rising middle class and rapid urbanization. Japan continues to be a huge market for toys and baby products, coupled with the fact that the number of children in China is expected to increase, there exists significant opportunities for us to grow these businesses,” said Andre Javes, President, Toys”R”Us, Asia Pacific, “The combination of these businesses is not only great news for our customers, it will also allow our team members to work more closely with their counterparts across geographies, sharing best practices and identifying efficiencies in operations.”
Mr. Javes will continue to oversee all operations of the combined businesses, as well as Toys”R”Us, Australia.