Abstract
Toys R Us is one of the first foreign retail chains to target the mass market in Japan. It introduces its successful formula that includes self-service, everyday low prices, high volume, a large scale and a vast selection of merchandise. Referred to as a category killer store format, this is an approach new to Japan. It has also brought a method of dealing directly with manufacturers as a means of cutting costs in support of its discount strategy. These characteristics are revolutionary to Japan, especially to the toy-distribution system's traditional characterisics. For foreign manufacturers, Toys R Us has also provided a new channel to sidestep Japan's complicated distribution system./ As such, its arrival has introduced fierce competition destined to accelerate changes in the Japanese toy-distribution system.
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