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Tag: Toys R Us

  • Toys R Us UK close its operational despite it is still active worldwide

    Toys R Us UK close its operational despite it is still active worldwide

    As a raft of UK Toys R Us closures were announced, management moved to reassure customers it is business as usual, globally.

    With the Toys R Us US parent trading under Chapter 11 bankruptcy protection, the company is moving to restructure the business globally. The UK division has initiated a process by which it is seeking creditor approval to “reposition its real estate portfolio for future growth and profitability”. That would lead to 26 stores closing, equal to about a quarter of its retail network in the market.

    Toys R Us head office has issued a statement assuring customers the UK Company Voluntary Arrangement (CVA) process will not impact any Toys R Us entities or stakeholders outside the UK, including employees, vendors and customers.

    “The company’s approximately 1600 Toys R Us and Babies R Us stores around the world, including all stores in the UK, are currently open for business and continuing to operate as usual. Customers can also continue to shop for the toy and baby products they are looking for online.”

    Toys R Us in Asia, a joint venture with the Fung Group, continues to trade unaffected by the US company’s problems. A partial float of the Asian business is being discussed as a means of reducing the parent company’s debt.

    Dave Brandon, chairman and CEO of Toys R Us, said the closure of stores in the UK would “put our UK operation on stronger financial footing”.

    “Through the CVA process, we hope to receive authorisation to restructure our UK lease obligations so that we will be better able to invest in our UK business and further improve the customer experience. Importantly, our stores and operations in our other global markets will not be impacted by this process.

    “We are confident that we are taking the right steps to ensure that the iconic Toys R Us and Babies R Us brands live on for many generations in the UK and around the world. We remain committed to championing play for kids and serving as a trusted resource and friend for parents around the world. Today’s proactive measure better positions us to achieve these goals and ensures customers can continue to shop us with confidence over the Holiday season and beyond.”

    Under the UK CVA process, Toys R Us UK has submitted a restructuring plan to its creditors and will solicit their approval of this plan over the next 14 days. It will need approval by 75 per cent of the creditors to proceed

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  • Toys R Us calls in restructuring advisors

    Toys R Us calls in restructuring advisors

    Toys R Us has appointed restructuring advisors as it struggles under a debt burden, suggesting it may be about to trim its store network.

    Neil Saunders says while the decision is not necessarily a sign of imminent bankruptcy, it is an indication the company is in “a very uncomfortable financial position”.

    “For a robust retailer, debt payments can be challenging. For a retailer struggling to generate sales growth while, at the same time, trying to invest to remain relevant – it can be the difference between success and failure.”

    Saunders says Toys R Us faces a pincer movement.

    “Firstly, it suffers competition from online and physical generalists who happily discount toys to drive customer traffic and sales for stores and websites. Toys R Us has little choice but to price match on some items but has no other categories with which it can balance out eroded margins. Where it fails to price match, it loses sales.

    “Secondly, Toys R Us has lost out in the digital space. Although recent digital investments have been made, the website and general e-commerce proposition are still below par. By our calculations, Toys R Us continues to lose online market share in toys.”

    A further complication for the toy giant is that it operates large and expensive stores.

    “These are increasingly unsuited to what consumers want and expect, and they are steadily becoming less productive and efficient,” says Saunders.

    “Against this backdrop, Toys R Us has to contend with the debt it accumulated as part of the leveraged buyout. In our view, this is an example of private equity damaging retailers by not running them as commercial trading entities but as ATMs.”

    Toys R Us in Asia is operated as a joint venture between the US parent and Fung Retailing. In April, it consolidated its operations in the region by merging the 160-strong Toys R Us Japan chain into the JV, which is 85 per cent owned by Toys R Us.

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  • Toys R Us Asia businesses consolidated

    Toys R Us Asia businesses consolidated

    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.

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  • Toys R Us Singapore plans two new stores

    Toys R Us Singapore plans two new stores

    Toys R Us Singapore plans two new stores, despite the current downturn in the retail market.

    Country manager Raymond Burt told Channel NewsAsia the first will open before Christmas and a second will follow in early 2017.

    The announcement came at the opening of the chain’s latest store at VivoCity, its ninth store in the city state.

    The locations of the new stores were not revealed although it is believed the new VivoCity outlet, with 30,000 sqft of floor space, will remain the largest in Singapore.

    “We will continue to grow here as we still see Singapore as a growth market,” Toys R Us APAC president Andre Javes said.

    “We don’t want to make decisions just based on the current economic situation which is tough… but this market has been a good one for the past 32 years and we have no issues investing more.”

    Javes, who described the toy category as “recession-proof” said he expects the company to benefit from a raft of branded merchandise opportunities related to Hollywood blockbuster movies scheduled for release in coming years.

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  • eOne’s ‘Peppa Pig’ Gains Momentum in China

    eOne’s ‘Peppa Pig’ Gains Momentum in China

    Entertainment One (eOne) has announced details of Peppa Pig’s rapidly growing popularity in China. Since launching on-air in Mainland China in 2015, eOne’s Peppa Pig has surpassed 5.4 billion views on its three on demand platforms, IQIY, Youku and Tudou. It is one of the most popular programs for pre-schoolers on state television broadcaster CCTV, where its repeat was the No. 1 animated show in its 7am timeslot.

    Peppa Pig also launched on VOD portals Tencent and LeEco in May 2016. To date Peppa episodes have already clocked up 1.7 billion views on Tencent and 850 million views on LeEco, making it the No. 1 animation on both platforms since its launch. In addition, Mango TV has recently acquired the rights to Peppa Pig and the VOD platform debuted the series earlier this month in Mandarin.

    Alongside its growing on-air presence, eOne is also nurturing the property’s digital profile through a range of social, online and interactive content. The brand’s official Peppa WeChat account, available on mobile devices, provides followers with regular news updates, tips, and activities for all the family. Peppa’s WeChat account launched in April 2016 and has already generated thousands of sign-ups.

    The Peppa Pig apps eOne has released to date have had tremendous download rates, making China the biggest territory for Peppa app downloads worldwide. Following their entrance on the App Store in late 2015, Peppa’s Paintbox and Peppa’s Actvitiy Maker have been hugely popular in China, with over 400,000 and 195,000 downloads respectively.

    Peppa’s online presence also extends onto e-commerce platforms as major Chinese online retailers Jing Dong and Tmall have launched a wide range of Peppa merchandise on their popular online shopping sites. Products now available to buy include Peppa’s house playset, vehicles, role-play sets, and plush.

    Toys are spearheading the brand’s licensing program in China and a newly launched Peppa Pig Ferris Wheel playset was sold exclusively at Toys “R” Us stores nationwide during the country’s Children’s Day celebrations in June 2016. The publishing category also continues to accelerate. A new series of Peppa Pig storybooks launched at retail in April 2016 and over 75k copies have been distributed nationally both online and in-store. Peppa Pig products will also have a presence in China’s first Hamleys toy store that is set to open its doors on October 10th. eOne’s Hong Kong team is developing bespoke Peppa artwork for a branded bay in the store.

    “We are thrilled to welcome our new broadcast partners for Peppa in China and we’re confident that these additional consumer touchpoints will significantly increase exposure for the brand as it continues to grow in popularity,” commented Olivier Dumont, Managing Director of eOne Family. “Building Peppa Pig’s digital footprint in the territory, through app downloads and social media channels, enables us to engage with audiences beyond the TV show and create the loyal fan base that is key to its longevity.”

     

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  • 100th store for Toys R Us China

    100th store for Toys R Us China

    Toy and baby products retailer Toys R Us has opened its 100th store in China.

    Ten years after entering the market, the US-based chain has its milestone outlet in the APM Shopping Mall in Wang Fu Jing, Beijing.

    During the past year, Toys R Us China has opened 27 stores across the nation.

    “International expansion, particularly throughout China and Southeast Asia, continues to be an important part of our long-term growth strategy,” says chairman/CEO Dave Brandon, who was at the Beijing opening ceremony. He notes an increasing demand in this market for quality children’s products and family entertainment experiences.

    Opening its first store in China in 2006, the company now has outlets in 44 cities, and plans to open another 30 stores this year.

    As part of the grand opening in Beijing, families were invited to meet such popular mascots as Balala Emma, Barbie, Geoffrey the Giraffe, Ninjago Kai and Ultraman. The store showcases the latest in “retailtainment”, digital technology and customer interaction. Customers can use a 70in. digital screen at the store entrance to browse through promotional items, make purchases, take “selfies” with special photo frames, play games and join the company’s Star Card loyalty program.

    Beijing’s store also features exclusive products not available elsewhere in the market, and throughout the APM mall are several new features sponsored by Toys R Us.

    Founded more than 65 years ago with headquarters in Wayne, New Jersey, Toys R Us formed a joint venture in 2011 with its licence partner in China and Southeast Asia, Fung Retailing. It took a 70 per cent interest in Fung Retailing’s stores in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand.

    Toys R Us also has a T-mall Store in China, launching its eCommerce website in 2012. It also has a mobile-optimised website in China. Toys R Us has 1 million WeChat followers, with 80 per cent of them joining the Star Card membership program.

    As well as 863 outlets in the US and Puerto Rico, the company has more than 755 international stores and more than 250 licensed stores in 38 countries. In Asia, there are more than 400 stores in Brunei, Hong Kong, Japan, Malaysia, Singapore, Thailand, Taiwan as well as mainland China. There are also licensed stores in Korea, Macau and The Philippines.