toys r us
The former Australian Toys“R”Us went into administration back in 2018. Image Supplied.
  • The 19,650 sqm warehouse is due for completion next week
  • The Australian division previously went into voluntary admin in 2018
  • Has been relaunched under a different entity employing an online-only operation

To accelerate its e-commerce growth, retailer Toys”R”Us ANZ Limited (ASX: TOY) has announced it has entered into a lease agreement for a large purpose-built warehouse distribution facility.

Due for completion around June 2022, the 19,650sqm building will be located in Clayton, Victoria. A new head office facility will connect with the warehouse.

The Australian division went into voluntary administration back in 2018, however, it has since relaunched under a different entity. Currently, the business employs an online-only operation.

The new website went live via a ‘soft launch’ back in June 2019 by limiting the number of products available to facilitate a solo launch.

“In alignment with the Company’s growth aspirations and vision, these new warehouse and office facilities mark a key strategic milestone that will enable Toys“R”Us to scale the business considerably and accelerate e-commerce operations,” said Louis Mittoni, Toys”R”Us CEO and Managing Director.

”As shopper demand via e-commerce pillars Toys“R”Us, Babies“R”Us and Hobby Warehouse continues to grow, this purpose-built state-of-the-art distribution centre will assist the company meet increased demand, improve cost efficiencies, and deliver higher levels of customer service and experiences to our shoppers.”

Louis Mittoni, Toys “R” Us CEO and Managing Director

Phil Pearce, CEO of ESR Australia, who is developer and lessor of the site, said his company has spent the past 18 months transforming the 6.4-hectare manufacturing site into a new innovative facility for the retailer.

“Toys“R”Us’ commitment to ESR’s Clayton Business Hub as its Australian headquarters sees the site fully-leased well before completion of construction and we look forward to welcoming the company to its custom-built facility next year.”

The transaction was brokered by Colliers.

“The growth of e-commerce has not been an unfamiliar narrative over the past 24 months, but we take particular pleasure in playing a small part in seeing the accelerated growth trajectory of this storied brand since pivoting to a digital first retail model,” explained James Stott, Director of Industrial at Colliers.

“This state-of-the-art logistics centre is the third deal we have brokered on behalf of Toys“R”Us over the past 12 months and importantly will exponentially grow its logistics capabilities and also become a hub where customers can engage with the Toys “R”Us and Babies“R”Us brands.”

James Stott, Colliers

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