Next year, iconic toy store chain Toys’ R’ Us will receive a new lease of life thanks to Macy’s, which will open more than 400 shop-in-shops in its department stores.
Partnership
The department store chain is reviving the defunct toy store chain through a partnership with brand management company WHP Global, which bought a majority stake in Toys ‘R’ Us owner Tru Kids earlier this year.
According to Nata Dvir, head of merchandising for Macy’s, significant sales growth in the existing toy business has led the company to look for opportunities to expand that offering. Macy’s has already started selling toys on its website, The Business of Fashion reports.
Once a thriving toy chain, Toys’ R’ Us filed for bankruptcy in 2017 due to massive debt and the rise of e-commerce. Several lenders and investment firms bought the company’s intellectual property, forming the company Tru Kids. In 2019, two Toys ‘R’ Us stores reopened under Tru Kids, but both closed earlier this year due to the Covid pandemic.
The fact that Macy’s will be selling toys is yet another sign that department stores are increasingly freeing up space for categories beyond fashion and apparel. For example, Kohl’s has signed a deal with Sephora and also freed up floor space for Amazon electronics and returns.
