Toys“R”Us®is partnering with Macy’s to open toy shops in over 400 department stores in the U.S beginning in 2022, the two companies announced Thursday. Exact store locations have not yet been announced and there is no information yet on the size of the presence the stores will have within the Macy’s Department Stores.
Starting Thursday, shopping for Toys R Us toys will be available at Macys.com/toysrus and Toysrus.com.
“As a Toys”R”Us kid, I could not be more excited to bring this beloved brand that so many of our customers know and love into Macy’s online and to our stores across America,” said Nata Dvir, Macy’s chief merchandising officer, in a statement. “Our toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination and create meaningful moments together.” Reports USA Today.
WHP Global announced that manages big brands has acquired a controlling interest in Tru Kids which is the parent company of the Toys R Us and Babies R Us brands. The brands assets including all intellectual property of Toys R Us were purchased after it filed for Chapter 11 bankruptcy protection in September 2017.
Putman Investments to purchase Toys’R’Us and Babies’R’Us Canada. “Toys’R’Us and Babies’R’Us are extremely strong brands that have been in great hands over the past three years,” says Doug Putman, founder of Putman Investments. “Since its split from the U.S., we’ve watched the way in which the company has grown and focused on the Canadian customer. Much has been achieved and we’re excited to help to drive the business forward.”
“We are pleased to announce our sale of the retail operations of Toys’R’Us Canada to Doug Putman,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “The transaction continues the implementation of the monetization plan for certain non-insurance holdings of Fairfax. Fairfax retains substantially all of the real estate acquired in our original purchase of Toys’R’Us Canada and, through a continuing royalty stream, we are provided with an opportunity to benefit over time in the future success of the business. This transaction would not have been possible without the steady and sound leadership of Vic Bertrand and his management team at Toys’R’Us Canada, and we are very thankful for all of their efforts to build the Toys’R’Us Canada brand.”
Nata Dbir, Macy’s chief merchandising officer said that Macy’s toy business grew exponentially in the past year and the new partnership with Toys R Us would allow the retailer to significantly expand their footprint in this category. The company hopes that shoppers would visit Macy’s looking for toys and would pick up a few more items as they shop in their more than 400 stores.
During a conference call on Thursday, CEO Jeff Gennette said that they were targeting the millennial mom. He mentioned that these moms often bought other high margin merchandise when they visited Macy’s to shop for children’s toys. The store-within-a-store has been a successful concept among many retailers and Macy’s is joining in to reap the benefits. New customers online helped Macy’s second quarter earnings and sales soar above analysts’ predictions. The company has also raised its fiscal 2021 outlook after its robust sales and earnings in the quarter.
Macy’s will power the Toys R Us website, according to the agreement. Earlier, Target had powered the toy chain but that agreement broke in July 2020. Earlier this year, WHP Global which is a brand management company, bought a controlling interest in Tru Kids which controls brands such as
- Toys R Us
- Babies R Us
- Geoffrey the Giraffe.
Tru Kids Inc. had bought Toys R Us in a liquidation sale in 2018. It tried to revive the in-store concept for the brand and opened two stores in New Jersey and Texas in 2019 but those stores were closed reportedly as a result of the COVID-19 pandemic. There has been no mention about the duration of the partnership between Macy’s and Toys R Us. Both the brands will currently gain from the joint venture as of now.
Image Mike Mozart