Profits at big-box toy retailer Toys R Us almost halved last year.
Pre-tax profit plunged 48% to £11.4m in the year to January 29, while turnover slipped 6.6% to £476m.
Toys R Us opened three stores in the period, reaching a total of 79 by the year end.
The retailer, which traditionally operates giant sheds on out-of-town retail parks, has launched a new smaller format since year-end, with its first shopping centre store in Whiteleys, London in September, as revealed by Retail Week.
The 10,000 sq ft shop has been opened as a pop-up initially.
Toys R Us has also launched an innovative Christmas marketing campaign. Last month it unveiled its interactive TV advert, offering anyone who ‘likes’ its Facebook page the chance to enter a competition to have a festive picture of them and their family featured at the end of its Christmas advert.
New UK managing director Roger McLaughlan joined in the period, starting in October, 2011 after leaving Asda Living where he was retail director. McLaughlan replaced David Rurka.