In stark contrast with former US parent, Toys ‘R’ Us Asia to open 60 new stores in 2019, seek further expansion

Toys ‘R’ Us Asia, backed by Hong Kong tycoon Victor Fung Kwok-king’s Fung Retailing Group, aims to open up to three stores in Hong Kong and dozens more in mainland China, bucking an economic downturn blamed largely on the US-China trade war.

The recession-proof nature of the demand for toys, the right store locations and a fresh offering of not only toys but fun and educational experiences for the whole family are key to the success of the Asia business, Jo Hall, Toys ‘R’ Us Asia’s chief commercial officer for Greater China and Southeast Asia, said in an interview during its second annual toy fair in Hong Kong, where it has 13 stores.

Toys ‘R’ Us Asia aims to expand in the region after divorce from American parent

“We are cautiously optimistic,” she said. “We continue to invest in refurbishing existing and opening new stores, and our investment budget in Hong Kong [for stores, information technology and online commerce] this year is the same as last year.”

Hall declined to give figures for the privately-owned company, when asked if the trade war and economic slowdown had hit sales. Toys ‘R’ Us Asia operates more than 550 stores across the region, and has 182 stores in mainland China.

It completed its separation from indebted former US parent firm Toys ‘R’ Us Inc in November. It plans to open 60 new stores in the region in 2019, most of them in China, its biggest growth market, besides Japan, Malaysia and Singapore, said Hall. The company, which operates in 10 Asian markets, is also seeking opportunities in Indonesia, Vietnam and Cambodia.

Hall said bricks-and-mortar toy stores remained highly relevant in Asia, as a “hands-on experience” was important for children to understand how toys work, and for parents to appreciate their developmental benefits.