Children’s goods retailer Toys ‘R’ Us says its strategic turnaround plan announced in March is on track and it has already achieved cost savings of $4 million this year.

To date, the company has improved its gross margin in the Australian direct-to-consumer e-commerce division from 16.4 per cent in February to 22.3 per cent in April.

In a market update, the Australian-listed owner of the famous toy retailer’s operations in Australia, New Zealand and the UK, said it had entered into an amended finance facility agreement as part of its strategic plan that will provide $1.5 million of credit to continue its reorganisation.

The company has appointed a commercial director in the UK and shortlisted applicants for a new MD for the Australia and New Zealand business.

Further reading: Online sales drive profits for Toy ‘R’ Us