Toysâ€œRâ€Us ANZ signs exclusive licence with WHP global for uk rights
Toysâ€œRâ€Us ANZ Limited and WHP Global, the parent company of Toysâ€œRâ€Us and Babiesâ€œRâ€Us today announced they have signed a landmark long-term exclusive licence agreement for Toysâ€œRâ€Us ANZ to run digital and physical retail commerce for Toysâ€œRâ€Us and Babiesâ€œRâ€Us in the United Kingdom.Â Â
This highly significant milestone is an acknowledgment of TOYâ€™s commitment to the brands and successful relaunch in Australia of Toysâ€œRâ€Us and Babiesâ€œRâ€Us, and a testament to the collaborative working relationship with worldwide brand owner WHP Global.
â€œWe selected Toysâ€œRâ€Us ANZ as our partner to expand into the United Kingdom because of their proven success in launching with us in Australia under the leadership of their CEO, Dr. Louis Mittoni,â€ said Yehuda Shmidman, WHP Global and Toysâ€œRâ€Us Chairman and CEO. â€œToysâ€œRâ€Us today is a vibrant business with over 900 stores and e-commerce sites across 25+ countries generating over US$2 billion a year in sales and growing, especially with the new launches underway for both the US and UK markets.â€
“Tailoring our successful Australian relaunch plan to the UK echoes the success of other e-commerce â€˜platform playâ€™ businesses that have delivered growth and value due to their ability to quickly and cost effectively expand their software, processes, partner relationships and brands into new countries”Dr Louis Mittoni, CEO and Managing Director of Toysâ€œRâ€Us ANZ
Dr Louis Mittoni, CEO and Managing Director of Toysâ€œRâ€Us ANZ, said: â€œTailoring our successful Australian relaunch plan to the UK echoes the success of other e-commerce â€˜platform playâ€™ businesses that have delivered growth and value due to their ability to quickly and cost effectively expand their software, processes, partner relationships and brands into new countries. Since Toysâ€œRâ€Usâ€™ return to Australia in June 2019, we have scaled quickly as customers returned to the much-loved brand and our e-commerce model has proven its success.
â€œMy team and I are looking forward to developing technical and commercial relationships with UK-based vendors and partners and to engage with the many loyal Toysâ€œRâ€Us former customers and fans in the UK.â€
Operations to be re-established in the UK
Toysâ€œRâ€Us ANZ plans to commence online sales to UK shoppers over the next several months, initially from existing operations in Australia, whilst it works to establish local teams, offices and logistics facilities during 2022 and 2023.
TOY recently announced a purpose-built, state-of-the-art warehouse distribution and adjoining head office facility located in Victoria. The new premises have been specifically designed and configured to house the TOY headquarters and to accommodate the Companyâ€™s medium-term requirements for warehousing, office space as well as a Toysâ€œRâ€Us retail experience centre. This includes an initial AU$2 million investment in Autonomous Mobile Robot (AMR) technology to increase capacity and efficiency. The new centre will enable the company to realise its UK growth ambitions, with a further strategy to transfer these technologies and other processes to future locations.
TOY delivered strong results for the fourth financial quarter despite the relocation of warehouses between 22 July to 12 August.Â The number of orders received via the Toysâ€œRâ€Us Australia website during September was 18.4k, representing an increase of 73.5% YoYÂ and equivalent to 50% of orders received during the FY21 Q4 period.
The Company ended the 2021 financial year with a strong balance sheet and is cash self-sufficient should it choose to be with a cash at bank balance of AU$17.3 million and is planning for rapid revenue growth over the next several years.
In connection with the licence agreement, TOY will issue shares to Tru Kids Inc. equal in value to US$1.76m, subject to shareholder approval at the Annual General Meeting (AGM) to take place later this year.
This announcement is authorised for release by the Toysâ€œRâ€Us ANZ Limited Board of Directors.
About Toysâ€œRâ€Us ANZ Limited
Toysâ€œRâ€Us ANZ Limited (ASX: TOY) is an Australian-based listed company with a mission to enrich the lives of people by encouraging exploration, creativity and living life more fully through the enjoyment of toys and hobbies. In addition to distributing leading products throughout Australia for key partners via its trading business Funtastic, the company recently acquired 100% of the Hobby Warehouse Group in November 2020, including Australian e-commerce websites Toysâ€œRâ€Us, Babiesâ€œRâ€Us and Hobby Warehouse and the distribution business Mittoni Pty Ltd. The Company changed its name from Funtastic Limited to Toysâ€œRâ€Us ANZ Limited on the 24 June 2021. Further information is available at corporate.toysrus.com.au
About WHP Global
WHP Global is a leading New York based firm that acquires global consumer brands and invests in high-growth distribution channels including digital commerce platforms and global expansion. WHP owns ANNE KLEIN, JOSEPH ABBOUD, LOTTO and a controlling interest in TOYSâ€Râ€US, BABIESâ€Râ€US, Geoffrey the Giraffe and more than 20 additional consumer brands in the toy and baby categories. The company also owns WHP+ (www.whp-plus.com), a turnkey direct to consumer digital e-commerce platform for brands, with full in-house operations including technology, data analytics, logistics, creative and digital marketing. For more information, please visit www.whp-global.com.