PPIH Acquires Toys R Us Japan Business to Target Top Market Share

Pan Pacific International Holdings, known as PPIH, has entered into a business transfer agreement as a sponsor to acquire the toy and children's products sales business of Toys R Us Japan.

Impress Watch reported that PPIH and its wholly owned subsidiary, Operation Shared Service, signed the agreement on October 1. The execution of the business transfer is scheduled for October 30. PPIH aims to achieve the number one scale in the toy industry by combining the expertise of Toys R Us with its own business foundation.

Toys R Us Japan had filed for civil rehabilitation proceedings with the Tokyo District Court after determining that continuing business independently was difficult. The company faced stagnant sales due to factors such as a declining birthrate and price competition with competitors. Since opening its first store in 1991, the company has operated an online store and approximately 150 physical Toys R Us and Babies R Us locations across Japan.

PPIH intends to acquire as many employees as possible and is requesting cooperation from lessors to obtain consent for the succession of all stores. The company views the domestic toy market, which exceeds 1 trillion yen despite the declining birthrate, as a market with significant growth potential. PPIH expects to attract new customer segments, including students, young people, and adults, through hobbies, trading cards, characters, and intellectual property.

As part of its strategy to strengthen non-food categories for sustainable growth, PPIH plans to create new reasons for customers to visit by opening stores in Apita and MEGA Don Quijote. The company aims to improve profitability and acquire new customers by integrating the brand power and expertise of Toys R Us.

Existing Toys R Us stores will be redefined from toy stores into entertainment formats. PPIH plans to strengthen offerings in adult-oriented goods and related non-toy products. Physical stores will be updated from places to buy into places to play to enhance experiential value and create gathering spots through event and community strategies.