- Toys“R”Us ANZ (TOY) signs a deal to trial nine Toys“R”Us store-in-store implants in the United Kingdom
- The children’s toy story penned an exclusive sub-licence agreement with WH Smith High Street, with the implants scheduled to open in the first half of 2023
- The year-long trial period begins upon the opening of the first implant and will include the sale of toys, games and children related products typically sold by Toys“R”Us
- If the trial proves to be successful, further stores may be rolled out
- Toys“R”Us ANZ was down 14.5 per cent, trading at 5.3 cents at 1:39 pm AEDT
Toys“R”Us ANZ (TOY) has signed a deal to trial nine Toys“R”Us store-in-store implants in the United Kingdom.
TOY penned an exclusive sub-licence agreement with WH Smith High Street, with the implants scheduled to open in the first half of 2023.
The company reported the UK market represents a significant near-term growth opportunity, allowing it to access the largest toy market in Europe and the fourth largest globally.
The trial period begins upon the opening of the first implant and extends for 12 months, and will include the sale of toys, games and children related products typically sold by Toys“R”Us.
WHS HS will pay TOY a fixed percentage royalty fee based on sales revenue generated within the implants, with the operating costs to be taken on by WHS.
At this stage, as a trial, TOY is not expecting to generate material levels of revenue and therefore the agreement is not considered by TOY to be materially price sensitive.
If the trial proves to be successful, further stores may be rolled out.
Toys“R”Us ANZ was down 14.5 per cent, trading at 5.3 cents at 1:39 pm AEDT.