Online sales drive profits for Toy ‘R’ Us
Children’s goods retailer Toys ‘R’ Us says it has achieved significant and sustained organic growth from both e-commerce and wholesale segments, relaunching its website in the UK ahead of Christmas.
For the year to July 31, sales from continuing operations were up 74 per cent to $37.9 million while gross profit rose 93 per cent to $8 million.
Total e-commerce invoiced sales grew 98 per cent to $26 million. The average order value was recorded at $133.50, which is a 10 per cent increase year-on-year. Active customers grew 30 per cent to 188,000 as of the end of July.
Toys ‘R’ Us ANZ CEO and MD Dr Louis Mittoni said the “positive organic growth” was achieved against a backdrop of decreased Australian toy industry sales and increasingly challenging trading conditions.
“We have tightened our focus on providing the leading toys, hobbies and baby products as we seek to enrich the lives of children and parents through our e-commerce direct-to-consumer retail operations.”
He added the company’s B2B business has complemented operations and contributed increasingly to the profitable growth of the enterprise.
Last October, the brand expressed its intention to launch Toys ‘R’ Us, Babies ‘R Us and associated IPs in the UK after all 100 stores were closed in 2018. The new e-store is expected to help scale its operational capabilities, delivering to one of the largest toy markets in Europe.