Toys R Us is making a comeback, and toymakers are rejoicing

The slow and steady resurrection of Toys R Us continued last month when its new owner announced plans to open nearly 30 new stores, expanding upon the scattering of brick-and-mortar shops that have kept the brand alive in recent years.

Now, with the holidays looming and toymakers facing strong economic headwinds, the industry is rejoicing that one of its most iconic retailers is back in expansion mode.

“A brand like Toys R Us that still lives in grandparents’, parents’, caregivers’ minds,” Greg Ahearn, president and CEO of The Toy Association and former chief marketing officer at Toys R Us, told Retail Brew. “That the brand is on the way up, I think is great for our industry.”

• Since declaring bankruptcy in 2017, Toys R Us has proven surprisingly durable as a brand, even amid a chaotic comeback saga. After a failed attempt to relaunch the company just prior to the pandemic, brand management company WHP Global bought a controlling stake in 2021 and announced plans to open 400 shop-in-shops in Macy’s department stores across the country.
• Later that year, WHP built on this momentum with plans to open a larger flagship store at the American Dream retail and entertainment complex in New Jersey, setting the stage for a larger build-out of standalone flagship stores in the years to come.

The latest announcement builds on that progress, with WHP partnering with Go! Retail Group to open eight new flagship stores and 20 “seasonal holiday shops.” One of these flagship stores—located at the Chicago Premium Outlets in Aurora, Illinois—is already open, as well as seven seasonal shops.

Branded experiences: The companies touted the stores’ assortment of popular brands, including Barbie, LEGO, and Hot Wheels, and “easy-to-shop experience,” qualities that are suited to the industry at this time, according to Ahearn: “I think it creates an experience that consumers still want, which is to walk into an in-person retail environment and be hit with the joy and wonder of toys.”

He called the new owner’s approach “thoughtful,” saying they are not overextending their footprint; they are finding strong locations and making sure their assortments are backed by strong brands.

The approach reflects the diversity of toy shoppers in the current retail environment. Ahearn said you’ve got online shoppers who are “the ultimate convenience shoppers,” in-person shoppers at mass merchants who are looking to combine shopping trips, and then a third category of customers who are “looking for something a little richer, something that’s a little bit more brand-driven.”

Fellow toy outlet FAO Schwarz has also created a more brand-driven experience. Each part of its iconic Manhattan store is now designated to a particular brand experience, such as the Jellycat Diner, where customers can order diner-themed plush toys from the UK soft toy maker in a glitzy restaurant setting. Its Barbie section is similarly immersive, bringing customers into a pink-hued room where they can meet with an “in-store stylist” to help dress their Barbie or Ken doll.

Even at a cultural level, Ahearn said, there is also something about Toys R Us’s comeback that is suited to the toy industry. “It’s an amazing nostalgia brand, and the toy industry lives on nostalgia,” he said. “It is an industry where what’s old is new again, and everybody loves to bring brands back.”

Whether the build-out drives sales for the industry remains to be seen, but Ahearn noted that “just creating more conversation around our industry is good.”