Don Quijote owner takes over Toys R Us Japan's 150 stores, plans to triple lineup

What's the deal? Pan Pacific InternationalDealroom has a profile for this one. Try Dealroom → Holdings (PPIH), the Japanese retailer behind discount chain Don QuijoteDealroom has a profile for this one. Try Dealroom →, has acquired the operations of Toys "R" Us-Japan and plans to triple the number of products on offer. The Kawasaki-based toy retailer filed for civil rehabilitation on October 1, 2026, and PPIH signed a business transfer agreement to take over all its stores.

Why now? Toys "R" Us-Japan has stayed in the red for years, weighed down by the country's declining birthrate, and carries liabilities of about US$101.5M. The court-led rehabilitation opened the door for PPIH, which plans to assume the brand and major liabilities and continue operating the chain's more than 150 stores nationwide.

What's the endgame? PPIH aims to restore profitability mainly by strengthening sales, tripling the product lineup and adding more in-store experience areas. The two companies also serve different customers: PPIH targets younger shoppers and tourists, while Toys "R" Us-Japan draws families.

"The addition of Toys 'R' Us-Japan's wide range of customer touchpoints will contribute to our group's sustainable growth," PPIH President Hideki Moriya said.

What could go wrong? A broader lineup still has to convert into profitable sales in a business squeezed by online shopping and fewer children. The turnaround is far from assured.

The signal: Japan's toy market hit a record US$9B in fiscal 2025, but growth now comes from adult collectors and tourists — trading cards alone accounted for US$2.6B, while traditional children's toys have slipped over the past decade. PPIH's bet on a wider, more kidult-oriented assortment, paired with a nationwide store network, is a play to capture the market's fastest-growing pockets.

Read more: Nikkei Asia

Image credit: PattayaPatrol