Children’s goods retailer Toys ‘R’ Us says it plans to open a 3000sqm experiential retail hub in Victoria if the company’s capital raising plan is successful.
According to an ASX announcement, the company has a target to raise up to $8 million through an Entitlement Offer with a minimum subscription of $5 million.
About $3 million will be invested in a custom-designed site for both Toys ‘R’ Us and Babies ‘R’ Us brands which will be attached to the label’s new purpose-built logistics and head office facility.
The site is anticipated to be one of the largest toy & baby stores in Australia and is forecast to deliver $7 million in annual sales.
A further $1 million will be invested in marketing and IT platforms while another $1 million will be used to scale the company’s state-of-the-art robotics and logistics centre.
Meanwhile, the company will deploy $3 million to support the rollout of new Toys ‘R’ Us stores located inside WH Smith high street shops in the UK.
As reported in May, Toys ‘R’ Us said 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.
