Lexi Webster
After closing its 44 Australian stores in 2018, Toys R Us is making a comeback in Australia. The company has announced plans for a 3000 sqm outlet in Victoria, aiming to build one of the largest toy and baby stores in the country. In 2021, Toys R Us was bought by Funtastic, which changed its name to Toys R Us ANZ, and the company has since been working on expanding its online presence and brand awareness. The new chief executive, Penny Cox, has shared her focus on rebuilding the once-popular toy store business, with a strategy to leverage the brand's power and nostalgia while reaching a new demographic. With a goal to raise $8 million in funding, Toys R Us Australia is set to return in 2024, bringing back the beloved toy store to the region.
| Characteristics | Values |
|---|---|
| Return date | 2024 |
| Number of stores closed in 2018 | 44 |
| Number of people laid off in 2018 | 700 |
| New owner | WHP Global |
| New chief executive | Penny Cox |
| New store format | Smaller "store-within-a-store" |
| Funding required | $8 million |
| Store size | 3000 sqm |
| Location | Victoria |
| Type of store | Experiential retail centre |
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What You'll Learn
Toys 'R' Us Australia's new chief executive, Penny Cox
Toys 'R' Us Australia and New Zealand's new chief executive, Penny Cox, has her work cut out for her as she takes the helm of the once-popular toy store business that collapsed in 2018. The company shuttered 44 stores and laid off 700 people after its US parent company filed for bankruptcy.
Cox, an experienced e-commerce executive with extensive international experience, including roles with Ocado, Coles, Redmart, Alibaba, and Carousell across the UK, Australia, and Southeast Asia, has been appointed to rebuild the Toys 'R' Us brand in the region.
Brand awareness is a top priority for Cox, who recognised that the company lacked in-house marketing expertise when she joined. She plans to build a small but powerful marketing team and leverage the brand's nostalgic power, including its mascot, Geoffrey the Giraffe, to reach a new demographic.
Cox is also focused on relocating to Melbourne and delivering a strong Christmas performance, a crucial trading period for the company, which makes 50% of its revenue in the last two months of the year. She aims to position the brand as a provider of higher-quality, longer-lasting toys, catering to parents' purchasing preferences amidst cost-of-living pressures.
Additionally, Toys 'R' Us is exploring new store formats, including smaller 'store-within-a-store' locations within larger retailers, and expanding its e-commerce presence. The company is also trialling co-hosted stores with WH Smith in the UK, with potential for further expansion if successful.
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The company's collapse in 2018
Toys 'R' Us Australia collapsed in 2018, following the fall of its American and UK counterparts. The company's US parent company filed for bankruptcy protection in March 2018, announcing the closure of 735 stores in the US.
In Australia, the company appointed McGrathNicol as administrators in May 2018, two months after the US bankruptcy announcement. Toys 'R' Us Australia had been seeking a buyer for its operations but was ultimately unsuccessful. This led to the closure of 44 stores across the country and the loss of around 700 jobs.
The collapse of Toys 'R' Us Australia was part of a wider trend of child-focused retailers facing difficulties in the Australian market at the time. Other retailers in this space, such as Baby Bounce and Baby Savings, also closed down due to high costs of rent, weak household spending, and aggressive discounting by competitors.
Despite the collapse, the Toys 'R' Us brand did not disappear entirely from Australia. The company's Australian business was rescued by the toy retailer Funtastic, which later changed its name to Toys 'R' Us ANZ. Online operations restarted in late 2019, and the company has since been working to rebuild its presence in the market.
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The brand's new owner, WHP Global
The new owner of Toys 'R' Us, WHP Global, has big plans for the brand's revival in Australia and beyond. WHP Global, a brand acquisition and management firm, bought a controlling stake in Toys 'R' Us in 2021 through the company's then-parent company, Tru Kids Inc.
Since taking over, WHP Global has been working to rebuild the Toys 'R' Us empire, which once boasted over 1400 stores and e-commerce sites across 31 countries. The company has announced a grand expansion of its US network, adding up to 24 new outlets over the next 10 years, including international airports and cruise ships.
In Australia, Toys 'R' Us is planning a comeback in 2024, with a new strategy focused on downsizing. Rather than the traditional warehouse-style stores, the new Toys 'R' Us stores will likely be smaller 'store-within-a-store' formats within local retailers. This approach aims to stabilise the business and focus on profitability before expanding further in 2025, including the potential launch of physical stores.
WHP Global's expansion strategy for Toys 'R' Us also includes the UK market, where they have partnered with Toys "R" Us ANZ to run digital and physical retail operations for Toys 'R' Us and Babies 'R' Us. Additionally, Toys 'R' Us is trialling nine stores in the UK through a partnership with WH Smith, with plans to expand further if successful.
With its global expansion plans, WHP Global aims to bring the Toys 'R' Us brand to consumers everywhere, leveraging the brand's nostalgia and powerful mascot, Geoffrey the Giraffe, to create fun and engaging marketing experiences.
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The future of Toys 'R' Us stores
Toys "R" Us is making a comeback in Australia, with plans to open new stores and expand its online presence. The company had previously shut down its operations in the country in 2018, closing 44 stores and laying off 700 people. However, it was rescued by toy retailer Funtastic Limited, which changed its name to Toys "R" Us ANZ. The new owners plan to rebuild the brand and bring back physical stores, with a focus on brand awareness and marketing.
The future of Toys "R" Us stores in Australia looks promising, with a planned return in 2024. The new stores will likely be smaller "store-within-a-store" formats within local retailers, rather than the traditional warehouse-style stores. This strategy aims to downsize while increasing brand presence and profitability. The company also plans to leverage the power of its mascot, Geoffrey the Giraffe, to create fun and engaging marketing campaigns that resonate with both nostalgia and new customers.
Toys "R" Us ANZ has signed a license agreement to operate in the UK, leveraging its successful launch in Australia. The company plans to open 24 new outlets in the US over the next 10 years, including locations in international airports and cruise ships. This expansion demonstrates the company's vibrant business model, generating over $2 billion in annual sales across more than 900 stores and e-commerce sites in 25 countries.
In Australia, Toys "R" Us aims to raise $8 million in funding to build a 3000 sqm retail centre in Victoria. The new store will be an "experiential retail centre", featuring hands-on activities for children, a cafe, and a glimpse into the company's robot-driven warehouse. This approach aligns with the company's belief that toys are essential, regardless of the rise in digital entertainment options.
The future of Toys "R" Us in Australia is focused on creating a fun and engaging brand experience, both online and in physical stores. By leveraging the brand's nostalgia and expanding its presence, Toys "R" Us ANZ aims to reconnect with customers and establish itself as a leading toy retailer in the country once again.
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The return of physical stores
Toys 'R' Us is making a comeback in Australia with plans to open physical stores in 2024. The iconic toy store chain, which shut down its 44 Australian outlets in 2018, is now looking to rebuild its presence in the region. The new stores will be smaller than the traditional warehouse-style stores and will likely be "store-within-a-store" formats within local retailers. This strategy of downsizing aims to focus on profitability and stability rather than rapid growth.
The return of Toys 'R' Us to physical retail spaces is part of a larger expansion plan by the brand. After being acquired by brand acquisition firm WHP Global, Toys 'R' Us has been working to relaunch and expand its global presence. This includes opening new outlets in the United States, the United Kingdom, and now Australia. The company aims to bring the brand to consumers everywhere, including flagship stores, airports, and cruise ships.
In Australia, Toys 'R' Us is currently focused on brand awareness and rebuilding its image. The new chief executive, Penny Cox, aims to leverage the brand's nostalgia and the power of its mascot, Geoffrey the Giraffe, to attract new customers. The company also plans to enhance its online presence and marketing strategies to reach a wider audience.
The first physical store in Australia is expected to be a 3000sqm retail centre in Victoria, specifically in Clayton, Melbourne's southeast. The store will be an "experiential retail centre", featuring hands-on activities for kids, a cafe, and a glimpse into the company's robot-driven warehouse. This new concept store aims to provide a fun and engaging experience for families while showcasing the latest in retail technology.
The return of Toys 'R' Us to physical stores in Australia demonstrates the brand's resilience and adaptability. By embracing a new strategy focused on downsizing and brand awareness, the company aims to reconnect with its customers and rebuild its presence in the region. With a combination of physical and online stores, Toys 'R' Us is poised to recapture the hearts of Australian families and create new memories for generations to come.
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Frequently asked questions
Yes, Toys "R" Us is planning a return to Australia with the aim of opening one of the largest toy and baby stores in the country. The company has said it will open a 3000 sqm megastore in Clayton in Melbourne's southeast.
Toys "R" Us is expected to return to Australia in 2024.
Toys "R" Us closed its 44 Australian stores in 2018 after its US parent company filed for bankruptcy.
In 2019, Toys "R" Us relaunched as an online-only store in Australia after being bought by Hobby Warehouse. In 2021, the company was bought by Funtastic, which changed its name to Toys "R" Us ANZ.
