meet the passion and demand of both kids and kidults. We have iterated with six generations of store concepts over the past six quarters to significantly elevate the shopping experience with immersive environments.” Toys ‘R’ Us launched its first IP Character Street at The Place in Shanghai, which also houses China’s first-ever Tomica brand store. In Singapore and Malaysia, the company introduced the ‘Toy + Play’ concept. Additionally, Toys ‘R’ Us partnered with K11 Group in Hong Kong to open the Playful Living concept store at K11 Art Mall and the Playful Piazza store at K11 Musea. “The new store concepts and partnerships have delivered impressive growth in traffic and sales,” he said.  “The response from customers has been overwhelmingly positive. Customers appreciate the interactive and engaging environments, enjoying hands-on experiences that go beyond traditional retail. The curated product selections make it easier for families to discover unique and exciting toys, while the immersive elements foster deeper connections with our brand.” The company rolled out approximately 20 new and renovated stores during the third quarter, which will be followed by more stores across Asia, including locations like Paragon in Singapore, Odaiba in Tokyo, and One Bangkok in Thailand, in the next few quarters.  “[It] is only the beginning of our transformation,” he said. “These expansions demonstrate our commitment to bringing innovative and engaging retail experiences to more customers throughout the region, continually evolving to meet their needs.” The executive said the company’s strategy is encapsulated in the FLEX model – flexible, light, efficient, and experiential.  “Being flexible allows us to tailor our store designs and offerings to meet the unique preferences of each market, adapting quickly to changing consumer trends. The light aspect emphasises streamlined operations and efficient use of space, creating inviting environments that are easy to navigate,” he said.“We focus on efficiency by optimising our product selections, helping us manage costs while enhancing the shopping experience. Most importantly, we aim to be experiential by incorporating interactive elements and partnerships that enrich the customer journey.” Capturing the opportunity “Expanding our focus to the kidult segment is another strategic shift, tapping into the rising trend of adults purchasing toys and collectibles,” Tsoi said.  According to research Market Decipher, the toy collectibles market was estimated at US$12.4 billion in 2021 and is forecast to reach a market value of US$35.3 billion by 2032, growing at a CAGR of 10.1 per cent. “The retail industry is rapidly changing to be even more experience-led and value-driven, and we are working tirelessly to transform to meet new consumer expectations, including those of kidults,” he said.  “Importantly, we are becoming significantly more efficient and productive on a unit investment basis with over a one-third increase in sales productivity per square foot. Enhanced efficiency from our flexible and lighter store formats has optimised operations, allowing us to manage costs effectively while delivering superior customer experiences. This operational excellence equips us with the confidence to overcome macroeconomic challenges.”  Headquartered in Hong Kong, Toys ‘R’ Us currently operates approximately 470 stores across Asia, including mainland China, Japan, Malaysia, Hong Kong, Singapore, Taiwan, Thailand and Brunei, and licences more than 90 stores in the Philippines and Macau. Tsoi said the company sees challenges as catalysts for its evolution rather than roadblocks.  “The retail sector in Asia faces macroeconomic headwinds, affecting consumer spending, coupled with declining birth rates across the region,” he said.  “To navigate these, our new concept stores are specifically designed to be flexible, efficient, and responsive to these dynamics. By adopting lighter-format stores, we increase our operational agility, enabling quick adaptation to shifting consumer behaviours.”