// Lego aims to expand its Chinese presence
// Its revenue has climbed 4% to $5.5bn (£4.1bn) in 2018 – with profits reaching $1.2bn (£900m)
// Lego also plans to axe 8% of its global workforce
Lego has announced plans to expand its presence in China amid revenue and profit growth in its financial year.
The toy retailer and manufacturer has taken this new initiative after “stabilising the business” in 2018 despite the failure of Toys R Us denting the company’s sales and exposure.
Sales at the Lego had decreased for the first time since 2004 in the previous year due to the lacklustre demand of its plastic block toys.
Meanwhile, it announced plans to axe eight per cent of its global workforce in a bid to “reset” the business.
However, the Danish firm said revenue climbed four per cent to $5.5 billion (£4.1 billion) in 2018 – with profits reaching $1.2 billion (£900 million).
Lego has credited the revenue growth to a double-digit growth in China, and sales recovery in the US and western Europe.
It also attributed the growth to its products Lego City and Lego Technic for accelerating the revenue and profit bounce-back.
“We are especially encouraged by our progress given the challenges facing the toy industry and the departure of specialist retailers such as Toys R Us that went under last year,” Lego chief executive Niels B Christiansen said.
“These shifts gave us the opportunity to strengthen our partnerships with retailers and find new ways to connect with shoppers and consumers across digital and physical channels.”
Lego is set to open 80 new stores in 18 Chinese cities this year to further work on its sales success and capitalise from one of the world’s largest economies.
Furthermore, the retailer opened its first Chinese flagship store in Beijing last weekend.