Magazines Archives - 2011 November
Toys R Us to take over Asia operations
US-BASED Toys R Us Inc has announced a joint venture with Hong Kong-based Li & Fung Retailing Limited, to take on a majority stake in the toy retailers existing licensed stores across Asia, with the option to acquire the remaining stake in the venture.
The 70:30 deal will see 90 stores in Asia, namely in Thailand, Malaysia, Singapore, China, Hong Kong, Taiwan and Brunei, managed directly by the company, while its remaining 14 stores in the Philippines and Macau continue to operate under a licence arrangement.
Li & Fung has been a terrific partner in establishing and growing the Toys R Us brand in Asia, and we are pleased to continue our work with them as we enter this exciting next phase of our business development there, stated Gerald Storch, Toys R Us chairman and CEO.
Noting that international growth remains a key part of our long-term business strategy, Storch continued: We believe there is significant growth opportunities for our company in this region, and we look forward to an aggressive expansion of our business in both existing and new Asian markets, including northern China.
The companys current president and CEO for Japan, Monika Merz, will take over as president for Asia, and will further develop the companys operations across the seven markets.
Additionally, Pieter Schats, previously CEO of Toys LiFung (Asia) Limited, who oversaw operations of Toys R Us stores in Asia, will become managing director for Toys R Us, Southeast Asia and Greater China, and will extend the companys support to licensed stores in the Philippines and Macau, on top of the seven markets that the company has acquired in the region.
Said Li & Fung Groups chairman, Dr Victor K Fung: We are pleased to return to the joint-venture arrangement with Toys R Us and are anticipating the next phase of business growth. The new agreement will enable us to expand into additional geographies such as northern China.
Li & Fung has established over 100 Toys R Us stores throughout Asia in the past 25 years, opening its first jointventure Toys R Us store in Hong Kong in 1986, which was later converted to a licensed business. ra
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