Toys "R" Us Announces Major Expansion with 120 New Stores
The toy retailer is launching its largest store opening initiative in nearly a decade, driven by increased demand from adult consumers.
Toys "R" Us is set to open 120 new stores across the country, marking its most significant expansion in almost ten years. This move comes as the company sees a surge in demand from adult customers, a trend that has boosted toy sales to their highest levels since 2020.
The company has secured one-year leases for these new locations, which include stores in Woodbury Commons and the Westchester in White Plains, New York, as well as the Mall at Short Hills in Millburn, New Jersey. According to Circana, a consumer data tracking firm, U.S. toy sales increased by 17% in the first half of the year, representing the strongest first-half performance in six years. This growth is largely attributed to adults purchasing trading cards and collectibles.
Adults now represent 55% of all toy sales, according to Circana's research. Former Toys "R" Us CEO Gerald Storch noted that mall operators appreciate having toy stores on-site, as it can prevent shoppers from going to other large retailers like Walmart or Target.
The new stores will feature popular brands such as LEGO, Barbie, Hot Wheels, Pokémon, and KPop Demon Hunters. Some locations will also include cafes and candy shops. Toys "R" Us, which is based in New York, is owned by WHP Global, a brand licensing firm that also owns labels like Marc Jacobs, Vera Wang, and Lands’ End.
The expansion strategy is being executed by Go! Retail Group, a company that operates pop-up stores and began the phased rollout of Toys "R" Us locations last year. Currently, there are approximately 40 Toys "R" Us stores, including spaces within Macy's and flagship stores at the American Dream mall in East Rutherford, New Jersey, and Minnesota's Mall of America.
The expansion began last month with Go! Retail Group opening stores ranging from 3,500 to 7,500 square feet. The total number of stores is expected to reach 160 in the coming weeks. This is a fraction of the 750 U.S. stores Toys "R" Us operated before its bankruptcy and subsequent closure of all domestic stores in 2017.
Founded in 1948 by Charles Lazarus, the company initially focused on baby furniture before evolving into a major toy retailer. Its downfall was attributed to a substantial debt of $5 billion, incurred after its acquisition by private equity firms Bain Capital, KKR, and Vornado in a $6.6 billion leveraged buyout in 2005. The company's bankruptcy significantly impacted the toy industry, which relied on Toys "R" Us for sales and product launches.
In the wake of Toys "R" Us's closure, retailers such as Walmart, Amazon, and Target have largely filled the retail void. Jamie Uitdenhowen, executive vice president at WHP Global and a former Toys "R" Us executive, stated that the toy industry remains strong, with a growing consumer base extending beyond children. Uitdenhowen referred to adults with childlike tastes as "kidults," highlighting their increasing importance in the market.
WHP Global manages the global license for Toys "R" Us, overseeing 1,680 stores in 37 countries and generating approximately $2 billion in annual sales worldwide.