On September 29, reports emerged that the toy retailer Toys “R” Us was moving toward withdrawing from operating its stores in Japan.
The operator of Don Quijote was reportedly considering taking over the business, including approximately 150 stores in Japan and the employment of their staff.
However, the acquisition and business transfer have not yet been announced as confirmed or completed results.
3-Line Summary
1. Toys “R” Us plans to withdraw from operating its stores in Japan
2. The acquisition of approximately 150 stores is anticipated
3. The acquisition has not yet been completed
Operating Entity for Approximately 150 Stores May Change
The Yomiuri Shimbun reported on September 29 that Toys “R” Us was moving toward withdrawing from operating its stores in Japan. Toys “R” Us is a toy retailer established by Toys “R” Us in the United States and others. In Japan, it operates approximately 150 locations combining Toys “R” Us toy stores and Babies “R” Us stores specializing in baby products.
According to the report, Pan Pacific International Holdings (PPIH), which operates Don Quijote, was reportedly pursuing a plan to acquire the Japan business from Toys “R” Us Asia, the parent company of Toys “R” Us Japan. The target includes not only the stores but also the Japan business, including employee employment, and the acquisition price is expected to be on the scale of 100 billion yen.
However, this is an acquisition outlook based on explanations from people involved. Based solely on the information presented, it cannot be determined whether the store names will be maintained, how operations will change, or through what procedures employment will be transferred. The fact that the stores and employment were both mentioned as part of the acquisition target indicates that this matter involves discussion of a business transfer distinct from the closure of individual stores.
Japan Business Continued After Its First Store Opened in 1991
Toys “R” Us Japan opened its first store in Japan in 1991. Even after Toys “R” Us in the United States experienced business failure in 2017, its Japan business continued.
However, the Yomiuri Shimbun reported that poor performance and continuing final losses resulted against a backdrop of toy sales by large electronics retailers and the spread of online shopping. The withdrawal policy is drawing attention because it concerns not simply whether one store will close, but whether the entity responsible for the business operated across Japan may change.
What the Acquisition Outlook for the Don Quijote Operator Means
PPIH is a company that operates the discount retailer Don Quijote. If the business transfer proceeds as reported, Toys “R” Us’s Japan business will move from its existing operator to PPIH.
The key distinction for readers is between a “withdrawal policy” and a “completed acquisition.” The direction of Toys “R” Us’s withdrawal from operating its stores in Japan and PPIH’s acquisition outlook for the business have been reported, but the actual completion of the transaction and specific details of future store operations have not yet been presented as confirmed results.
References
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