Aeon Credit Service has launched a co-branded credit card with toy retailer Toys 'R' Us in anticipation of the Christmas spending season. Aeon managing director Kazuhide Kamitani said Aeon would use the gradual recovery of the economy to line up with new merchants and expand its cardholder base. Bruno Li, retail services director of Li & Fung - operators of the regional joint venture with United States-based Toys 'R' Us - said the retail environment in Hong Kong remained tough, despite recent increases in sales volumes. 'The amount of actual retail dollars has shown a drop, but we expect the situation to improve as positive sentiment develops throughout the region,' he said. Mr Li said he was cautiously optimistic about sales for the Christmas season. Holders of the new card will qualify for a 5 per cent discount on all credit card purchases at any Toys 'R' Us stores on the first Friday of each month plus 'toy dollars', redeemable at the store.