“If at first you don’t succeed, try, try again.” But will a certain old toy store chain ever succeed again?
For several generations, families were well-acquainted with Geoffrey the giraffe and a catchy jingle about never wanting to grow up.
But in 2018, no one could be a Toys R Us kid anymore after the chain shut down. But the lenders who decided to liquidate announced they wanted to revive the chain. Their first step was to team up with the Kroger family of grocery stores to open little pop-up shops in late 2018. Then, after bouncing between a few names to operate under, the first new Toys R Us stores opened in 2019. However, at least in part due to the COVID-19 pandemic outbreak, these locations shut down in early 2021.
Toys R Us is now making another entrance into brick-and-mortar sales. This time, instead of going at it alone with a couple of stand-alone stores, it’s teaming up with someone else again. However, it’s not a grocery store this time. Instead, it’s department store Macy’s.
Macy’s is also now running the Toys R Us website. After Toys R Us’ bankruptcy, Target ran the online store and then Amazon.
Toys R Us going back to brick-and-mortar isn’t a surprise. After the owner of the Anne Klein and Joseph Abboud clothing brands took control in March 2021, the CEO was determined to not give up on physical locations.
It may be a bit surprising they’re going back to the store-in-a-store concept again versus stand-alone locations. But the Toys R Us in New Jersey and Texas that closed this year were designed to put emphasis on experiences. In this current atmosphere, that’s not a winning strategy. A large portion of the population are still limiting their venturing out, and many have likely permanently adjusted to online methods of shopping. Retail sales also dropped in July, so there is still some uncertainty and shakiness in the economy.
Toys R Us sections are scheduled to debut in over 400 Macy’s locations in 2022, so it looks like Toys R Us will miss this upcoming holiday season. This is less than the 600 Krogers for their previous store-in-a-store concept.
However, Macy’s is probably a better fit. While the mid-tier retailer has always had some kid-related fun items, competitors like Kohl’s and JCPenney have made a bigger push over the last few years, like teaming up with American Girl and Disney respectively.
Macy’s itself has been struggling. The retailer has suffered financial losses due to ebbing brick-and-mortar shopping (especially in malls), the rise of stores like TJ Maxx, and the lack of own-brand merchandise. In 2020, they planned to close 125 stores over the next three years. Analysts even suspected it might go into bankruptcy before it secured a new round of credit.
So the Toys R Us brand brings a well-known name to its stores, and this nostalgia plus increased toy visibility can help boost sales.
Unfortunately, with Toys R Us currently going to be limited to Macy’s locations, this means that space is a premium. I’m sure Macy’s will stock some anime-connected collectibles like Funko POPs, but I’m sure the focus is going to be on actual kids brands like Fisher-Price, Hasbro, and Mattel. Maybe some strategy board games, as that’s a growing category.
Also, Macy’s has about 750 stores, with about 550 operating under the Macy’s name. While news reports say “over 400” Macy’s stores will have Toys R Us sections, there could be some locations that will not have one. So those with a smaller location in either square footage or foot traffic may be disappointed in 2022 to not be able to relive the Toys R Us experience. But I guess with Macy’s downsizing, shoppers should be glad to even still have a store by 2023.
So while I was hoping Toys R Us could make a gradual full-store comeback with some possible geek merchandise and other anime and game-related collectibles a la GameStop, it seems likely shoppers will have to settle for the store-in-a-store with more kid-focused toys.
At the very least, hopefully this Toys R Us sticks because the brand can’t be doing these relaunches every year! And that would mean the end of the Toys R Us name for good, which would be a shame.