WHP Global has entered a long-term agreement with PRG Retail Group to grant the company rights to former Toys"R"Us Iberia license assets through its Spain and Portugal-based subsidiaries. The new collaboration will help keep the brand in motion and retain employment for approximately 800 people, according to a press release.
"Toys'R'Us has a vibrant global business with more than 900 branded stores and e-commerce businesses in 25+ countries. We look forward to working with the experienced team at PRG as we continue to execute on our overall strategy to expand the Toys'R'Us brand in new and existing high growth markets throughout the world," said Yehuda Shmidman, WHP Global & Toys"R"Us Chairman and CEO.
Through this transaction, the Italian Group, considered a major contributor to the toy and children’s product sector, will strengthen its presence across Europe.
PRG Retail will benefit from the market’s developmental potential. With headquarters in Madrid and Lisbon, their company has established 46 stores, 35 in Spain and 11 in Portugal.
The location, set to open at the acquired perimeter, is projected to complete 2.5 million transactions and generate €100 million this year, 10% of which is contributed by digital platforms. PRG’s overall financial levels are expected to revert back to pre-pandemic levels during the upcoming Christmas season.
"We are excited about this new great adventure and ready to bring to Spain and Portugal the model that we are successfully applying in Italy and with which we intend to grow to become the first hub dedicated to the family in Europe, able to propose to the customer a complete specialized offer of toys, clothing and childcare products in highly qualified, multi-format and multi-banner stores," Amedeo Giustini, CEO of PRG Retail Group, said. "To do so, we will share the experience acquired by PRG in building and managing the customer journey on an integrated system of physical and digital contact points, we will invest to renew current technological systems and optimize processes, starting with those related to the purchase of goods."
The company’s management, commonly known for overseeing Toys"R"Us® and PRG Retail Group, was advised by the global teams affiliated with E&Y and the law firm Uria Menéndez.
"Our goal is to become, also in Spain and Portugal, the first ally of mothers and growing families, from pregnancy through all stages of children's lives. Paloma Perez, CEO of Toys'R'Us Iberia, will remain at the helm, ensuring continuity and knowledge of the Iberian market, with the aim of building together a path of growth and development," Giustini said.