Toys"R"Us ANZ Limited announced that it has signed an exclusive sub-licence agreement with WH Smith High Street Limited (WHS HS) to trial nine Toys"R"Us store-in-store (SIS) implants in the United Kingdom. These trial Toys"R"Us SIS implants are scheduled to open in the first calendar half of 2023. The trial period commences upon the opening of the first SIS implant and extends for a period of 12 months, or longer if mutually agreed, and will include the sale of toys, games and family/children related products typically sold by Toys"R"Us.

WHS HS will pay TOY a fixed percentage royalty fee based on sales revenue generated within the SIS implants and the costs associated with operating SIS implants will be borne by WHS HS. At this stage, as a trial, TOY is not expecting to generate material levels of revenue and therefore the agreement is not considered by TOY to be materially price sensitive. Upon successful completion of the trial period and achievement of mutually agreed key performance indicators, there may be a stage 2 roll-out of further SIS implants over the initial term of the agreement of approximately 10 years (with the ability to grant a further term of 5 years subject to certain conditions being met).

The agreement is subject to customary termination agreement clauses and events, including loss of exclusivity if certain key performance indicators are not satisfied. The agreement restricts WHS HS and its affiliates to using Toys"R"Us trademarks and other intellectual property for the purpose of the physical SIS implants and excludes e-commerce.