The newly-revamped “digital-first e-commence direct-to-consumer retailer”, Toys R Us has slashed $4 million in costs, as it announces its strategic plan to built its Australian online business is well on track.
In March, the company outlined a seven-step plan for growth in Australia, which included the aforementioned cost cutting.
The company is moving to hire a new Managing Director role for the ANZ region, and has relocated its office and bulk warehouse operations to a new, purpose-built distribution centre in Clayton, Victoria, which will allow the company to scale fourfold.
This consolidation to a single site will allow streamlines delivery and improve customer service, and allows for more inventory.
The Autonomous Mobile Robot will also greater increase efficiency, while the sub-leasing of excess warehouse space “greater than the head lease cost” allows the company to slash fixed costs.
The gross margin in the Australian direct to consumer e-commerce division has been vastly improved, from 16.4 per cent for February to 22.3 per cent for April.
Toy brand Funtastic acquired the Hobby Warehouse Group in November 2020, which included Australian e-commerce websites Toys“R”Us, Babies“R”Us and Hobby Warehouse, and the distribution business Mittoni.
The company started trading under Toys“R”Us ANZ Limited in June, 2021.