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Toys ‘R’ Us rides Black Friday boom, but delivery delays bite

Toys ‘R’ Us saw online sales jump 139 per cent during November, driven by the success of its Cyber Week sales.

According to the business, invoiced sales revenue hit $4.09 million during the month, while the actual number of orders jumped 81 per cent to 31,200.

Average order value also improved, hitting $121.40 – a 30 per cent improvement on the same time last year.

However, while the sales increase was welcome, it also meant Toys ‘R’ Us had to delay the implementation of a next-day delivery service to 1Q22, as it believes such a service would be an “unacceptable risk to already busy operations”.

“Despite challenges arising from delivery delays to our shoppers and associated order backlogs, we are pleased with the strong growth rate of Toys ‘R’ Us, a tribute to the effort and cohesive teamwork of our employees,” said Louis Mittoni, CEO and managing director of the business.

“The Company is currently focused on executing important future goals, including the completion of the current trading period that extends through to New Year sales, construction of the new 19,650sqm e-commerce fulfilment facility in Victoria, and expansion into the United Kingdom.”

Toys ‘R’ Us has been working out of a temporary warehouse in Dandenong South since July, putting a strain on its ability to fulfil orders, while its new fulfilment facility is built: an issue which meant it failed to grasp earnings growth last year.

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