Toy giant uncertain on return to Cairns

THE new licensees behind Toys R Us are yet to confirm whether the store will return to Cairns.

US company Tru Kids Inc, which owns Toys R Us and Babies R Us, announced this week it was entering into an exclusive licensing agreement with Australian company Hobby Warehouse.

It will initially open as an online store on June 12, but the company has said it will also open a number of “experience centres” around Australia in 2020.

The store was previously based at the Showground Shopping Centre on Mulgrave Rd at Westcourt but closed its

doors permanently after selling off everything including the fittings and fixtures in August last year.

In total about 700 people, including staff in Cairns, lost their jobs when all 44 stores across the country closed after the company was placed into liquidation.

In a rush to close down the store and move stock, discounts of up to 70 per cent off were being offered to customers.

Toys R Us in the US also went into administration in March last year.

Hobby Warehouse commercial adviser, Kevin Moore, said the bigger online focus would allow the brand to thrive in Australia and New Zealand.

“Previously, the Toys R Us and Babies R Us business model in Australia was focused primarily on large physical retail stores, which had high fixed costs and extended periods of relatively low sales due to seasonal factors,” Mr Moore said.

“Going forward, the business model for Australia and New Zealand will be online focused, with smaller and fewer physical ‘experience centres’ that allow children and their families and friends to see and touch our products.”