Amazon is reportedly in talks with Toys “R” Us to acquire some of its stores in the U.S, shortly after the toy retailer revealed that it is closing its stores in the country following a declaration of bankruptcy.
The online giant, however, is not interested in maintaining the Toys “R” Us brand, but it will use the stores for its own purposes.
With more than 5 billion items shipped worldwide in 2017, Amazon is expanding rapidly. The company’s net sales increased by 31% to 177.9 billion, making Amazon one of the fastest growing firms in the world and turning its founder Jeff Bezos into a billionaire. Currently, Bezos is the world’s richest man with a net worth that Forbes estimates to be $122 billion.
The acquisition of Toys “R” Us stores will help Amazon expand across the brick and mortar space, an area the online retailer is now keen on exploring. The Toys “R” Us deal would follow Amazon’s other acquisitions like the Whole Foods Market Inc that would help it consolidate its position in the offline market.
Toys “R” Us, Inc., toy and baby products chain, was among the America’s largest private companies in 2017, with sales of $11.54 billion by fiscal year end 31 January 2017. The company is reportedly closing down in the U.S since it was not able to compete with online websites like Amazon.
However, the toy retailer is hoping that it can find a buyer for its Canadian unit that is performing relatively well. The company has announced that it will shut down all its stores in the U.K. The future of its stores in Australia, France, Poland, Portugal and Spain are also hanging in balance.
Toys “R” Us is present in 19 locations in the Middle East and North Africa region. Al-Futtaim is a retailer for Toys “R” Us in six countries including Bahrain, Egypt, Kuwait, Oman, Qatar and the U.A.E.