P.M. BRIEFING : Japanese Fire Salvo in Toy War

Toy merchants in Japan today launched an association to help small toy stores modernize and survive competition from large foreign retailers such as U.S.-owned Toys R Us.

The Japan Assn. of Specialty Toy Shops, comprising 520 small toy retailers, aims to protect its members from retailers like Toys R Us Japan, the association said.

In July, Toys R Us Japan announced plans to open about 100 stores in Japan over the next 10 years. Protests by local merchants have helped put the issue of large stores versus small ones on the agenda of U.S.-Japan trade negotiations.

The group will work with operators of small toy stores in regions around the country where Toys R Us plans to open its stores to help them develop ways to compete with the big retailers, said Takanari Seki, the association’s vice chairman.