The Competition Commission has given the green light to a proposed merger between Toys R Us South Africa and rival retailer ToyZone, with key conditions to protect jobs.
The local arm of the iconic toy brand, Toys R Us, plans to acquire ToyZone, expanding its national footprint and strengthening its position in the South African toy retail market.
Despite the turbulent global history of Toys R Us – which included bankruptcy and multiple relaunches in the United States – the South African operation has remained stable and profitable, operating independently under Michmir Investments (Pty) Ltd, which holds the local license.
Michmir also controls Babies R Us, as well as Amic Africa and Amic Retail Services.
The company operates a network of retail stores and an online platform across South Africa.
Branded toys
ToyZone, jointly owned by an individual and MSDS No.8 (Pty) Ltd, runs 13 stores and an e-commerce store.
It also specialises in branded toys from leading international manufacturers.
The Competition Commission concluded that the merger would not significantly reduce market competition.
However, it imposed a condition to safeguard employees – namely, no retrenchments related to the merger for at least two years after implementation.
This acquisition marks a significant consolidation in South Africa’s toy retail industry, potentially allowing Toys R Us to broaden its reach and enhance its product offerings amid rising competition from online retailers.
How often do you shop at Toys R Us?
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