In 2018, it broke many hearts when Toys “R” Us closed its doors for good. While it’s tried to come back, it’s never really worked. Now, Macy’s will try to resurrect the beloved toy store once again…but will it work?
Toys “R” Us: Third Comeback
That’s right: Toys “R” Us and Macy’s are officially partners! Now, Macy’s will try and bring the toy store back to life for the second time in three years. However, they’re testing a new tactic: the shop-in-shop format. Next year, over 400 Macy’s locations will open Toys “R” Us sections within their stores, in addition to selling the brand’s toys on the Macy’s website.
Why the shop-in-shop tactic? Well, it provides Macy’s with the biggest rewards with little risk. Instead of opening new shops and renting new locations, they simply replace a current section of a Macy’s area. If Toys “R” Us fails yet again, it’s much easier to replace a shop-in-shop than an entire location. Meanwhile, selling toys will also allow Macy’s to compete with Target and Walmart as a place to purchase everything you need in one location.
“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,” Nata Dvir, Macy’s chief merchandising officer, said 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…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.”
Macy’s New Tactics
Previously, in 2019 WHP Global tried to bring Toys “R” Us back. However, they failed. Why? Well, the biggest reason was, of course, the coronavirus hit the nation, closing all the locations. Now, WHP Global will try again, with Macy’s on their side. “Our partnership with Macy’s marks the greatly anticipated return of Toys “R” Us in the U.S.A. and changes the retail landscape by combining two beloved retail brands together for consumers across the nation in a completely innovative way,” Yehuda Shmidman, chairman and CEO of WHP Global and Toys R Us, said in a statement.
Meanwhile, Macy’s Inc. Chairman and CEO Jeff Gennette hopes to use the partnership to open even more Toys “R” Us locations than previously existed. Meanwhile, as stated, Macy’s wants to use these to become an even bigger part of the department store game, at least according to Neil Saunders, managing director of consultancy GlobalData Retail. “Macy’s added their own small toy department to a lot of stores last year, and many of them are very messy and hard to shop,” Saunders said. “Standards need to be stepped up if they’re to make a success of the Toys “R” Us partnership.”
Of course, store-in-store concepts have become a big hit for many companies in 2020 and 2021. Target, for example, opened a lot of Apple and Ulta locations, which helped drive a second wave of the pandemic. Will it work for Macy’s – we’ll have to wait and see!