TOYS"R"US, INC. Acquires Majority Stake in Existing Business
Operations Throughout Southeast Asia and Greater China
Joint Venture Agreement with Li & Fung Retailing Provides
Significant Opportunity for Further Expansion in New and Existing
Asian Markets
WAYNE, N.J., Nov. 1, 2011 /PRNewswire-Asia/ -- Toys"R"Us, Inc.
and Li & Fung Retailing today announced they have entered into
a joint venture agreement for the Toys"R"Us(R) business in
Southeast Asia and Greater China. With this agreement, the existing
Toys"R"Us licensed operations throughout Asia, which currently
consist of more than 100 stores and offices across nine markets,
will become 70 percent majority owned and controlled by Toys"R"Us,
Inc. and 30 percent owned by Li & Fung Retailing. The terms of
the joint venture also allow Toys"R"Us, Inc. to acquire the
remaining share of the business in the future.
Effective immediately, the joint venture will include 90
existing Toys"R"Us stores in Brunei, mainland China, Hong Kong,
Malaysia, Singapore, Taiwan and Thailand. These stores will be
considered wholly owned operations of Toys"R"Us, Inc., increasing
the number of the company's wholly owned international locations by
17 percent. The remaining 14 stores in the Philippines and Macau
continue to be operated under a license agreement.
"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. 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, Inc. "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 all nine 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, Inc. employees. An existing network of eight
distribution centers in Asia will be used to stock its Toys"R"Us
stores.
The Chairman of the Li & Fung Group, Dr Victor K Fung said,
"Over the past 25 years we have opened over 100 Toys"R"Us stores
across Asia. This successful business has benefited from high brand
awareness and the recruitment of nearly three million members in
our Star Card loyalty program in the markets we operate. We are
pleased to return to the joint venture arrangement with Toys"R"Us,
Inc. in anticipation of the next phase of business growth. The new
agreement will enable us to expand into additional geographies such
as Northern China, which will help us leverage even further growth
in the region."
Toys"R"Us, Inc. opened its first international locations in 1984
with wholly owned stores in Canada and a licensed store in
Singapore and has continued to grow its operations around the
world. The Toys"R"Us business in Asia grew in 1986 when Li &
Fung Retailing opened the first Toys"R"Us store in Hong Kong at
Ocean Terminal in a joint venture with Toys"R"Us, Inc. This joint
venture was converted to a licensing business in 1999.
Toys"R"Us, Inc. now operates more than 600 wholly owned
locations in the U.K., Japan, France, Germany, Spain, China and
Canada, among others. In addition, the company currently has more
than 140 licensed Toys"R"Us stores through agreements with
respected retail partners around the globe.
About Toys"R"Us, Inc.
Toys"R"Us, Inc. is the world's leading dedicated toy and
juvenile products retailer, offering a differentiated shopping
experience through its family of brands. Merchandise is sold in 873
Toys"R"Us and Babies"R"Us stores in the United States and Puerto
Rico, and in more than 600 international stores and over 140
licensed stores in 35 countries and jurisdictions. In addition, it
exclusively operates the legendary FAO Schwarz brand and sells
extraordinary toys in the brand's flagship store on Fifth Avenue in
New York City. With its strong portfolio of e-commerce sites
including Toysrus.com, Babiesrus.com, eToys.com and FAO.com, it
provides shoppers with a broad online selection of distinctive toy
and baby products. Headquartered in Wayne, NJ, Toys"R"Us, Inc.
employs approximately 70,000 associates annually worldwide. The
company is committed to serving its communities as a caring and
reputable neighbor through programs dedicated to keeping kids safe
and helping them in times of need.
About Li & Fung Retailing
Li & Fung (Retailing) Limited, a member of the privately
held Li & Fung Group, was formed in 1985 as a wholly owned
subsidiary of the privately held Li & Fung (1937) Limited. All
the retailing businesses under Li & Fung Retailing are not
related to the publicly listed Li & Fung Limited (SEHK:
494).
Under Li & Fung Retailing there are two listed entities:
Convenience Retail Asia Limited (SEHK: 00831), operator of the
Circle K convenience stores and the Saint Honore Cake Shops in
Southern China; and Trinity Limited (SEHK: 00891), a leading
high-end luxury menswear retailer primarily serving Greater
China.
In addition to the listed entities there are other privately
held businesses including LiFung Children (Holdings) Limited with a
business focus on apparel, footwear and accessories for
children.
Li & Fung Retailing's businesses extend from Greater China
to South Korea, Singapore, Malaysia, Thailand, Indonesia and other
Southeast Asia countries through a combined network of over 1,100
stores
Media Contacts:
Toys"R"Us, Inc.
Kathleen Waugh
Tel:+1-973-617-5888/646-366-8823
[email protected]
Jennifer Albano
Tel: +1-973-617-5632
[email protected]
SOURCE Toys"R"Us, Inc.