Toys R Us is planning a major return to the US in Macy’s shop in shop partnership

Toys R Us is preparing for its latest reincarnation, this time through a major new partnership to launch shop within shop concessions in more than 400 Macy’s stores across the United States.

Revealed earlier this week, Macy’s Inc has teamed up with WHP Global to bring the Macy’s and Toys R Us brands together, delivering an expansive assortment of toys and games both online via macys.com/toysrus as well as in Macy’s more than 400 stores across America.

The shop within shop Toys R Us concept will roll out nationwide in 2022.

“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.

“Our toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination and create meaningful moments together. Toys”R”Us is a globally recognized leader in children’s toys and our partnership allows Macy’s to significantly expand our footprint in that category, while creating more occasions for customers to shop with us across their lifestyles.”

The Toys”R”Us experience at macys.com/toysrus lets shoppers search for products by age, toy type, character and brand. From perennial favorite toy cars and dolls to STEM-inspired products for creative learners, Macy’s expanded assortment of the most popular items, including products that highlight inclusivity, discovery and learning, will offer something for every parent and child.

Powered by Macy’s, ToysRUs.com will look to serve as the dedicated authority for all things toys and play, with immersive content that aims to connect consumers to the toy offering at macys.com.

Within Toys“R”Us shop-in-shops rolling out to more than 400 Macy’s stores nationwide in 2022, customers will be welcomed by Geoffrey the Giraffe before discovering and playing across dedicated sections by age, interest and category, with interactive experiences, activation centers and iconic elements throughout.

Yehuda Shmidman, chairman and CEO of WHP Global and Toys“R”Us, commented: “Our partnership with Macy’s marks the greatly anticipated return of Toys”R”Us in the USA, and changes the retail landscape by combining two beloved retail brands together for consumers across the nation in a completely innovative way. We’re thrilled to be launching this new partnership together with Macy’s.”

Founded by Charles Lazarus, Toys”R”Us became one of the world’s best loved toy stores and a globally recognised household name in the toy category. Today, Toys”R”Us has a vibrant business that generates more than $2 billion in global retail sales annually through nearly 900 branded global stores outside the US and e-commerce businesses in more than 25 countries.

WHP Global takes controlling stake in Tru Kids with expansion plans for Toys R Us, Babies R Us

The New York brand acquisition and management firm, WHP Global has taken a controlling interest in Tru Kids Inc, the parent company to Toys R Us, Babies R Us, Geoffrey the Giraffe brands, and more than 20 established consumer toy and baby brands.

Under the acquisition, WHP will now manage the global TRU business, spanning brick and mortar and digital retail spaces, as it acts to direct its strategic expansion.

WHP has now become a significant shareholder in the Toys R Us and Babies R Us brands which combined generate over $2 billion in global retail sales a year through almost 900 branded stores and ecommerce sites across more than 25 countries.

The move follows a year in which the toy sector has seen a growth across its biggest markets, including the US where, despite the struggles of the pandemic, the industry grew 16 per cent.

WHP is now one among a group of institutional investors in the Tru Kids Inc company, joined by funds managed by Solus Alternative Assets Management and funds managed by the Private Equity Group of Ares Management Corporation.

Yehuda Shmidman, chairman and CEO at WHP, said: “Our investment in Toys”R”Us reflects our belief and passion for the brand. We are thrilled to be taking the reins of the world’s leading toy brand at a time when the category is up 16 per cent and consumer demand for toys is at an all-time high.

“This is a natural fit for WHP, as we can leverage our global network and digital platform to help grow Toys”R”Us and Babies”R”Us around the world.”

Shmidman has extensive experience with the brands, having served as Vice Chairman of TRU since 2019.

For more than 70 years, Toys R Us it has been a destination for children and parents looking for toys. Founded by Charles Lazarus, Toys”R”Us became a globally-recognized household name.

Babies”R”Us was introduced several years after the Toys”R”Us brand was founded, and is recognised as having the largest baby registry across the USA.

In addition, there are more than 20 related consumer brands in the portfolio, including Journey Girls, Fastlane, True Heroes, You & Me, Just Like Home, and Imaginarium.

Including TRU and its fashion brands, WHP manages over $3 billion in retail sales across its portfolio of brands. WHP is backed by a $350 million equity commitment from funds managed by Oaktree Capital Management, L.P. with a leverage facility provided to WHP by funds and accounts managed by BlackRock.