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Cape Town - Despite its global affiliate facing mountains of debt and filing for bankruptcy, for the South African Toys 'R' Us and Babies 'R' Us business is booming.
The South African Toys 'R' Us plans to expand its national footprint by opening more stores in Gauteng, the Western Cape, the North West Province and Mpumalanga, the retailer said in a statement on Tuesday.
"Toys 'R' Us and Babies 'R' Us SA are well positioned to achieve our target of adding seven more stores to our portfolio," Toys 'R' Us and Babies 'R' Us marketing manager Nicole Annells told Fin24.
"Increasing the brand's footprint in these areas strengthens our presence and opens further growth opportunities in Southern Africa."
The new stores' locations include:
• Table Bay Mall (September)
• Waterfall Mall, Rustenburg (September)
• I’langa Mall, Nelspruit (October)
• Menlyn Park Shopping Centre (October)
• Mall of Africa (October)
• Cavendish (October)
• Clearwater (November)
Meanwhile, Toys 'R' Us Inc, which incorporates Toys 'R' Us in the US and Canada, announced that it filed for bankruptcy due to a debt load from a previous buyout and fierce competition in online shopping.
Although the bankruptcy filing by the company may have global implications, especially for Chinese toy manufacturers, some 38% of the company’s revenue came from overseas markets in the latest fiscal year.
This has no effect on the South African stores, which are in a licenced agreement with Toys 'R' Us Inc and functions independently from the Toys 'R' Us global affiliates.
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