Following Toys“R”Us Japan’s policy of withdrawing from the market, PPIH, the operator of Don Quijote, is expected to acquire its Japan business and take over approximately 150 stores. The workforce is expected to be around 6,000.
Toys“R”Us announced plans to withdraw from its Japan business, and Pan Pacific International Holdings (PPIH) is working toward acquiring the business and continuing to operate approximately 150 stores in Japan. Toys“R”Us Japan is estimated to have approximately 6,000 employees, including part-time workers.
As background, the toy market reached a record ¥1.1664 trillion in fiscal 2025, up 6.3% year on year. At the same time, the number of births continues to decline and the child population is shrinking. Growth in demand from adults for products such as card games, hobbies and stuffed toys is supporting the market.
Sales channels have become fragmented across online retailers, consumer electronics stores and toy sections at general retailers, changing the traditional model of going to a toy store to buy toys. The acquisition is expected to extend to stores outside Tokyo in regional areas and is viewed as a move symbolising a reorganisation of retail-floor strategies.
There has been speculation that the retail cultures of Toys“R”Us and Don Quijote could be integrated. Toys“R”Us offers a retail environment for shoppers seeking specific products, while Don Quijote creates unexpected discoveries through its densely packed displays. The combination of the two is expected to create a new model for brick-and-mortar retail.