One of the United States' most iconic toy stores is returning to brick-and-mortar retail in time for the holiday season this year. Toys"R"Us will open shops inside every Macy's store by mid-October in the U.S., part of a rollout that started last year, the companies announced in a news release on Monday, July 18.
The in-store shops of Toys"R"Us will range from 1,000 square feet to 10,000 square feet, with the ability to expand up to an additional 3,000 square feet to offer an even wider assortment of their products, according to NBC News. The shops will feature hands-on demonstration tables and a life-size Geoffrey Giraffe sitting on a bench where families can take pictures.
Macy's stores will host nine days of in-store events at the shops starting October 15 through October 23, including family-friendly activities and daily giveaways from famous toy brands like LEGO, Barbie, and more.
Toys"R"Us makes a grand comeback after 2017 bankruptcy
Toys"R"Us filed for bankruptcy in 2017 as the company faced hundreds of millions of dollars in debt amid the broader decline in traditional retail. The bankruptcy led to the closure of some 900 Toys"R"Us stores in the United States and resulted in approximately 33,000 layoffs. Founded in 1948, the brand had closed its last two physical stores in the country by January 2021 as it sought to weather the COVID pandemic.
New York-based WHP Global, a brand management firm whose other labels include Anne Klein, Joseph Abboud, and Babies"R"Us, acquired the Toys"R"Us brand in March 2021 for an undisclosed sum. Macy's started offering Toys"R"Us products online later that year.
Yehuda Shmidman, chairman and chief executive officer of WHP Global, told CNBC in an interview last year that they are in the brand business, and for them, Toys"R"Us is the most trusted, beloved, and credible toy brand in the world. He added that they are coming off a year where toys are just on fire, and for Toys"R"Us, the United States is a blank canvas.
The U.S. experiencing a toy sales boom
According to retail insights firm NPD Group, toy sales have exploded amid the COVID pandemic, with retail sales of toys in the U.S. generating nearly $29 billion last year. That is a huge increase compared to about $22 billion in toy sales in 2019. NPD said that the boom had been fueled in part by the arrival of stimulus checks into bank accounts of American shoppers.
Nata Dvir, Macy's chief merchandising officer, said that the company could not wait to bring the Toys"R"Us experience to life in their stores. She added that they hope Toys"R"Us kids of all ages discover the joy of exploration and play within their shops and families create special memories together.
Dvir said that the customer response to their partnership with Toys"R"Us has been incredible, and their toy business has seen tremendous growth; as a result, the Joplin Globe reported.
