Toys ‘R’ Us returns to Australia following licensing deal by Hobby Warehouse
American retail brands Toys ‘R’ Us and Babies ‘R’ Us will be returning to Australia in June.
The return comes about after Australian company Hobby Warehouse licensed the Toys ‘R’ Us brand from American owner, Tru Kids.
To announce the launch Toys ‘R’ Us release a campaign video starring a young boy dressed as a pirate, escaping his home to go on an adventure.
Toys ‘R’ Us Australia went into voluntary administration in May 2018, two months after its parent company collapsed into the US. A month later the administrators moved to close all 44 stores, resulting in 700 job losses.
The new Toys ‘R’ Us strategy will focus on online retailing and have fewer physical stores.
Hobby Warehouse chief executive, Louis Mittoni, said that the business’ experience as an online retailer will help assist in relaunching the Toys ‘R’ Us brand
“We are delighted to bring the much-loved brands of Toys ‘R’ Us and Babies ‘R’ Us back to Australia and to introduce them to New Zealand. We believe play is extremely important in the development and wellbeing of children and in their interaction with family and friends. Play enables children to develop their imagination, collaborate, problem solve, explore, create or simply express themselves spontaneously,” Mittoni said.
“Our mission is to encourage children to engage with as many forms of play as we possibly can. Hobby Warehouse is a digital native with a keen understanding of how to accelerate and match the requirements of the modern shopper.”
Hobby Warehouse commercial advisor, Kevin Moore, stated: “Previously, the Toys ‘R’ Us and Babies ‘R’ Us business model in Australia was focused primarily on large, physical retail stores which had high fixed costs and extended periods of relatively 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.”
Tru Kids executive vice president of global licensing and general counsel, James Young, said: “We are thrilled to partner with Hobby Warehouse to bring Toys ‘R’ Us and Babies ‘R’ Us back to Australia and to launch in New Zealand. Louis Mittoni and his team have a strong digital vision and understand both the heritage of our iconic brands and how to evolve the shopping experience for the modern consumer. This is an exciting milestone for our company as we continue to grow Toys ‘R’ Us and Babies ‘R’ Us around the world.’
Toys ‘R’ Us will be launching an online store on June 12.
