Toys"R"Us Japan Becomes Part of Toys"R"Us Asia Ltd Under New Agreement with Fung Retailing Limited
Marketwired
HONG KONG, CHINA--(Marketwired - May 3, 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.
About Toys"R"Us Asia Ltd Toys"R"Us Asia Ltd, a division of Toys"R"Us, Inc., currently operates 223 wholly owned stores with approximately 3,800 associates in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand, and licenses an additional 34 stores in the Philippines and Macau. The integration of Toys"R"Us Japan into Toys"R"Us Asia will add 160 Toys"R"Us and Babies"R"Us stores and approximately 6,600 associates to the pan-Asia toy store chain. As the leading toy, baby and educational products retailer for children in Asia, the company offers a differentiated shopping experience with a broad selection of exclusive products and unique services.
About Toys"R"Us, Inc. Toys"R"Us, Inc. is the world's leading dedicated toy and baby products retailer, offering a differentiated shopping experience through its family of brands. Merchandise is sold in 883 Toys"R"Us and Babies"R"Us stores in the United States, Puerto Rico and Guam, and in 795 international stores and 254 licensed stores in 37 countries and jurisdictions. With its strong portfolio of e-commerce sites including Toysrus.com and Babiesrus.com, the company provides shoppers with a broad online selection of distinctive toy and baby products. Toys"R"Us, Inc. is headquartered in Wayne, NJ, and has an annual workforce of approximately 60,000 employees worldwide. The company is committed to serving its communities as a caring and reputable neighbor through programs dedicated to keeping kids safe and helping them in times of need. Since 1992, the Toys"R"Us Children's Fund, a public charity affiliated with Toys"R"Us, Inc., has donated more than $130 million in grants to children's charities. For more information, visit Toysrusinc.com or follow @ToysRUsNews on Twitter. Follow Toys"R"Us and Babies"R"Us on Facebook at Facebook.com/Toysrus and Facebook.com/Babiesrus and on Twitter at Twitter.com/Toysrus and Twitter.com/Babiesrus.
About Fung Retailing Limited Fung Retailing Limited is a privately-held entity and a member of the Fung Group. Its businesses extend from Greater China to Korea, Singapore, Malaysia, Thailand and the Philippines through a combined network of over 2,700 stores. They include stores operated separately and independently by publicly-listed Convenience Retail Asia Limited (SEHK: 00831) and Trinity Limited (SEHK: 00891), as well as the privately-held Branded lifestyle Holding Limited, Fung Kids (Holdings) Limited, Toys"R"Us (Asia) Limited and Suhyang Networks Company Limited. Fung Retailing employs over 16,000 staff, and its turnover exceeded US$1.85 billion in 2015.
