Toys ‘R’ Us Asia aims to expand in the region after divorce from American parent
- Proposed expansion could see two new stores in Hong Kong and more than 60 more across Asia
- Fung Group’s stake increases from 15 to 21 per cent
Toys ‘R’ Us Asia plans to expand its presence in the region, mainly in China and Japan, after divorcing itself from its US parent company which filed for bankruptcy last year.
At a press conference in Hong Kong, Andre Javes, president and CEO of Toys ‘R’ Us Asia, repeatedly stressed that the Asian business is now completely separate from the troubled US entity, Toys ‘R’ Us Inc, and that its shareholders are focused on developing the market in the region.
He outlined expansion plans at the event on Monday, which included opening 68 new stores, principally in China and Japan. And in an interview with the Post he said that the company was looking at new markets such as Indonesia and Vietnam, and that discussions were under way for two new shops in Hong Kong.
Javes also promised new investments in IT and e-commerce, though Toys ‘R’ Us has a very loyal customer base that prefers shopping in stores, unlike most other product categories that are switching rapidly to online channels. Average “dwell time” in Toys ‘R’ Us stores was over an hour, while overall sales via e-commerce channels amounted to between 5 and 10 per cent of total sales, depending on the market, Javes said.
Javes said Toys ‘R’ Us Asia had been growing rapidly despite the troubles in the US, registering “double digit” revenue growth over the last five years and opening 49 stores in the past year, most of them in China.