Toy market news

Toys R Us signs exclusive UK sub-licence agreement with WHSmith

The new sub-licence agreement will see Toys R Us concessions installed at nine WHSmith locations across the UK

Digital-first eCommerce direct-to-consumer retailer, Toys R Us ANZ Limited has announced that it has signed an exclusive sub-licence agreement with WHSmith High Street Limited to trial nine Toys R Us store-in-store concessions in the United Kingdom. These are scheduled to open in the first calendar half of 2023.

As outlined on the Australian Stock Exchange, the trial period commences upon the opening of the first store-in-store installation and extends for a period of 12 months – or longer if mutually agreed – and will include the sale of toys, games and family/children related products typically sold by Toys R Us. WHSmith will pay Toys R Us a fixed percentage royalty fee based on sales revenue generated within the installations and the costs associated with operating installations will be borne by WHSmith. At this stage, as a trial, Toys R Us is not expecting to generate material levels of revenue and therefore the agreement is not considered by Toys R Us to be materially price sensitive.