Wayne, N.J. -- Toys “R” Us announced Tuesday a joint venture with Li & Fung Retailing that will expand Toys “R” Us in Southeast Asia and Greater China.
With the new agreement, the existing Toys “R” Us licensed operations throughout Asia, consisting of more than 100 stores and offices across nine markets, will become 70% majority owned and controlled by Toys “R” Us and 30% owned by Li & Fung Retailing.
Effective immediately, the joint venture will include 90 existing Toys “R” Us stores in Brunei, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand, increasing the chain’s number of wholly owned international units by 17%.
A remaining 14 stores in the Philippines, and Macau, will continue to be operated under a license agreement.
“We believe there is significant growth opportunity 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,” said Jerry Storch, chairman and CEO, Toys “R” Us. “International growth remains a key part of our long-term business strategy, and we are proud to celebrate this important milestone for our company.”
The joint venture will include ownership and oversight of office operations in seven markets, as well as the regional headquarters in Hong Kong. More than 350 employees who had previously been part of the licensed operation will now become Toys “R” Us employees, and the existing eight DCs in Asia will be used to stock Toys “R” Us stores.