Leader in the toy and children’s products sector, PRG Retail Group undertakes to secure the continuity and future growth of the Toys"R"Us brand in Spain and Portugal
NEW YORK, July 22, 2022 /PRNewswire/ — WHP Global, the parent company of Toys"R"Us® and PRG Retail Group ("PRG" or the Company) announced today a new long-term agreement where PRG has acquired the assets of the former Toy"R"Us Iberia license through its subsidiaries in Spain and Portugal, securing the continuity of the famous and renown toy brand and maintaining employment for approximately 800 people. With this transaction, the Italian Group, a leader in the toy and children’s products sector, present in the Iberian Peninsula since 1963 with the Prénatal brand, strengthens its presence in the two historical markets and continues with determination its growth strategy in Europe.
With this transaction, financed entirely with internal resources of the company, PRG Retail Group consolidates its position in both markets with high value assets and a network with high development potential: 46 stores, 35 in Spain and 11 in Portugal, e-commerce platforms, logistics center and the headquarters in Madrid and Lisbon.
Net sales of the stores in the acquisition perimeter are expected to reach €100 million already in 2022, generated through approximately 2.5 million transactions, 10% of which would come from digital platforms. Thanks to the support of PRG and after a long period of declining turnover, a Christmas season at pre-pandemic levels is expected.
"Toys"R"Us has a vibrant global business with more than 900 branded stores and e-commerce businesses in 25+ countries. We look forward to working with the experienced team at PRG as we continue to execute on our overall strategy to expand the Toys"R"Us brand in new and existing high growth markets throughout the world," said Yehuda Shmidman, WHP Global & Toys"R"Us Chairman and CEO.
"We are excited about this new great adventure and ready to bring to Spain and Portugal the model that we are successfully applying in Italy and with which we intend to grow to become the first hub dedicated to the family in Europe, able to propose to the customer a complete specialized offer of toys, clothing and childcare products in highly qualified, multi-format and multi-banner stores," says Amedeo Giustini, CEO of PRG Retail Group. "To do so, we will share the experience acquired by PRG in building and managing the customer journey on an integrated system of physical and digital contact points, we will invest to renew current technological systems and optimize processes, starting with those related to the purchase of goods. Our goal is to become, also in Spain and Portugal, the first ally of mothers and growing families, from pregnancy through all stages of children’s lives. Paloma Perez, CEO of Toys"R"Us Iberia, will remain at the helm, ensuring continuity and knowledge of the Iberian market, with the aim of building together a path of growth and development."
For the management of the transaction, the company has been advised by the international teams of E&Y and the law firm Uria Menéndez.
PRG Retail Group: Founded in Italy in 2015, is the leading distributor in the children and toy sector, with 912 stores in 9 countries (Italy, Spain, Portugal, France, Greece, the Netherlands, Belgium, Luxembourg and Switzerland) and a workforce of over 6000 people. It includes the brands Prénatal, Bimbostore, Toys Center, King Jouet, MaxiToys, and holds the exclusive license for FAO Schwarz in several countries in Continental Europe. PRG’s mission is to help, surprise and make people dream, simplifying life for the growing family.
WHP Global: WHP Global is a leading New York based firm that acquires global consumer brands and invests in high-growth distribution channels including digital commerce platforms and global expansion. WHP owns TOYS"R"US®, BABIES"R"US®, ANNE KLEIN®, JOSEPH ABBOUD®, LOTTO®, JOE’S JEANS®, and WILLIAM RAST® as well as a controlling interest in the ISAAC MIZRAHI® brand. Collectively the brands generate approximately USD$4.5 billion in global retail sales. The company also owns WHP+, a turnkey direct-to-consumer digital e-commerce platform for brands, with full in-house operations including technology, data analytics, logistics, creative and digital marketing and WHP SOLUTIONS, a sourcing agency based in Asia. For more information, please visit www.whp-global.com.
SOURCE WHP Global