Major toy retailer Toys 'R' Us is reportedly preparing to exit the Japanese market. Its operations in Japan are expected to be acquired by Pan Pacific International Holdings Corporation (PPIH), the company behind Don Quijote, in a deal estimated at around ¥10 billion.
According to Japanese media reports, PPIH plans to acquire the Japanese business from Toys 'R' Us Japan parent company Toys 'R' Us Asia, including its existing stores and workforce. Toys 'R' Us and baby-products brand Babies 'R' Us currently operate around 150 stores across Japan and employ roughly 6,000 people, including part-time staff.
Toys 'R' Us Japan opened its first store in 1991 and continued operating independently even after the retailer's US business filed for bankruptcy in 2017. In recent years, however, the company has struggled amid Japan's declining birth rate, the expansion of online shopping, and growing competition from major electronics retailers moving into toy sales. Official Gazette filings show that the business has also posted net losses for several consecutive years.
If completed, the deal would bring Toys 'R' Us Japan's current operating structure to an end after 35 years. Attention will now turn to how PPIH plans to integrate the roughly 150 stores into its wider retail network.
Note: Financial figures and earnings forecasts should be confirmed through the company’s official announcements.
via： 日本経済新聞