Toys “R” Us has been busy since its return to the marketplace.
E-commerce direct-to-consumer retailer Toys “R” Us ANZ (Australia New Zealand) Limited signed an exclusive sublicense agreement with WH Smith High Street Limited — a global retailer for news, books, and convenience — to trial nine Toys “R” Us store-in-store implants in the UK. These implants are scheduled to open in the first half of 2023.
The trial period starts upon the opening of the first implant and goes for a period of 12 months (or longer if mutually agreed upon) and will include items typically sold by Toys “R” Us, including toys, games, and family- and kids-related products. WH Smith will pay Toys “R” Us a fixed percentage royalty fee based on sales revenue generated by the implants and the costs associated with operating the implants will be assumed by WH Smith.
Upon completion of the trial period, there might be a stage two rollout of further implants over the initial term of the agreement of approximately 10 years, with the ability to extend the agreement five years depending on certain conditions being met. The agreement restricts WH Smith and its affiliates to using Toys “R” Us trademarks and other intellectual property for the purpose of the physical implants and excludes e-commerce.
This announcement comes on the heels of Toys “R” Us and Babies “R” Us returning to the UK with the launch of digital flagship e-commerce websites for both properties.
