Toys “R” Us Acquires RIOT Art & Craft

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By Published On: March 21, 20240 Comments

CEO Penny Cox says she is confident that this acquisition will solidify TOY as a leader in the ecommerce space.

Toys “R” Us (TOY) has announced it has executed agreements to acquire the key assets of RIOT Art & Craft. The arts and crafts store has been operating in Australia for over 50 years and has built a strong rapport with customers.

TOY CEO Penny Cox said she is delighted to share the news of the RIOT acquisition with shareholders. “The acquisition of the key assets of RIOT represents an important strategic step in our ongoing transformation to be a diversified House of Brands,” said Cox. “RIOT’s strong brand recognition, loyal customer base, and high-margin product lines align perfectly with our growth objectives.”

“We’re merging RIOT’s product range and passionate customer base with our cutting-edge ecommerce platform, creating a powerhouse for innovation, creativity and inspiration. This acquisition expands our product portfolio and strengthens our competitive position within the online retail sector. 

TOY says this acquisition presents ‘exciting opportunities’ for the business, citing a series of benefits. TOY notes that RIOT’s ‘extremely strong’ brand reputation, combined with a loyal customer base will benefit its strategy of acquiring strong brands which are profitable and complementary to its existing brand. 

According to TOY, the two companies share a similar customer demographic with RIOT comprising of approximately 540,000 retail and 2,400 wholesale customers which complements TOY’s own growing customer network, enabling cross-marketing of products and services to a wider audience, with a view of driving significant sales growth across Arts, Toys and Baby products.

The company believes RIOT Art & Craft’s operations can be easily migrated to its existing infrastructure, which is expected to result in overall improved group efficiencies.

As the acquisition is not covering the whole business, instead the stock, brands, and IP, TOY was unable to measure the financial performance of these assets. 

The consideration for the acquisition will see the existing RIOT shareholders becoming shareholders in TOY, which is subject to shareholder approval at this point.

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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