Toys ‘R’ Us eyes exiting Japan, selling business to Don Quijote operator
Toys ‘R’ Us Japan has been losing money in recent years.
Toys 'R' Us, a major toy retailer, is considering exiting the Japanese market by selling its business to Pan Pacific International Holdings, the operator of discount store chain Don Quijote, according to a source familiar with the matter dated September 29. Toys 'R' Us Japan has been experiencing financial losses in recent years, as indicated by its official gazettes.
The decline in Japan's birth rate has led to shifting demographics, with fewer children in the population. Additionally, consumers in the country are increasingly turning to online shopping. The Japan subsidiary, which currently operates around 150 stores, is owned by Toys 'R' Us Asia and employs approximately 6,000 people, including part-timers.
The first Toys 'R' Us store opened in Japan back in 1991. The original U.S. operator that launched the iconic toy chain in 1948 filed for bankruptcy protection in 2017. Despite this, Toys 'R' Us Japan maintained its operations in the country from its headquarters in Kawasaki, Kanagawa Prefecture. Pan Pacific International Holdings, the operator behind Don Quijote, has not yet commented on the potential acquisition.
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