Yahoo Finance Toys ‘R’ Us to reopen in Australia within days
American retailer Toys ‘R’ Us, along with Babies ‘R’ Us, will return to Australia after it went into voluntary administration in May 2018.
Following a licensing deal struck with Hobby Warehouse, the popular toy shop’s online store is reopening on 12 June and will be taking an online-only approach for the first 18 months of reopening.
“We are launching online, but are aiming to establish brand new Toys"R"Us and Babies"R"Us experiential stores from next year,” the Toys ‘R’ Us website said.
Hobby Warehouse will be able to sell toys and products from brands like LEGO, Barbie, and Disney through the Toys ‘R’ Us and Babies ‘R’ Us website.
The closure of the toy retailer’s 44 stores in July last year saw around 700 Australians lose their jobs.
Toys ‘R’ Us re-emerged as Tru Kids Brands in February. At the time, its CEO and former Toys ‘R’ Us global chief merchandising officer Richard Barry said it was in talks with local partners to revive its Australian operations.
The revived Toys ‘R’ Us retains the brand name only and has no connection to the original company.
“We are a new Australian company that has different staff and management to the original Toys"R"Us Australia,” the website said.
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Louis Mittoni, CEO of Hobby Warehouse, said he was “delighted” to bring the toy retailer back to Australia and that their online experience would help relaunch the brand.
“We believe play is extremely important in the development and wellbeing of children and in their interaction with family and friends,” he said.
“Play enables children to develop their imagination, collaborate, problem solve, explore, create or simply express themselves spontaneously.
“Our mission is to encourage children to engage with as many forms of play as we possibly can.
Hobby Warehouse commercial advisor Kevin Moore said the toy giant’s previous business model “focused primarily on large, physical retail stores” with high fixed costs and extended periods of low sales due to seasonal factors.
“Going forward, the business model for Australia and New Zealand will be online focused, with smaller and fewer physical ‘experience centres’ that allow children and their families and friends to see and touch our products.”
Toys ‘R’ Us narrowly avoided falling victim to the ‘retail apocalypse’ and joins a string of stores that have been rescued from going under, such as Oroton, Marcs and David Lawrence, Doughnut Time, SurfStitch and Maggie T.
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