Japanese Stores Unite to Fend Off Toys R Us

Eleven Japanese toy retailers have formed an association to try to protect domestic toy stores from competition by giant U.S. toy retailer Toys R Us.

The Japan Assn. of Specialty Toy Shops, to be formally launched Sept. 28, will “provide support” to local toy stores in areas in Japan where Toys R Us opens branches, a director for the association told a news conference Friday.

Toys R Us Japan, 80% owned by U.S. toy retailer Toys R Us, said in June that it planned to open about 100 stores in Japan over the next 10 years.

The association will work with the Japanese government on ways to solve administrative problems stemming from a relaxation in May of regulations that has made it easier for large stores, including Toys R Us, to open outlets in Japan.

The easing of the Large Retail Store Law, which aimed at protecting small retailers, was part of efforts by Japan and the United States to reduce trade barriers.

Since the easing of the regulation, several large foreign retailers have announced plans to open stores in Japan, including Britain’s Virgin Retail Group and upscale New York fashion retailer Barney’s.

In May, local retailers fought to block a decision by Toys R Us to open a store in Niigata in central Japan.