Toys ‘R’ Us is set for a revival four years after its collapse through US department store giant Macy’s.
New life is being breathed into the once-defunct toy retailer through a new partnership with brand management company WHP Global.
The retailer’s parent company TRU Kids sold a controlling stake in the company to WHP Global earlier this year as the latter aimed to build a portfolio of global brands.
Over 400 Macy’s stores in the US will open Toys ‘R’ Us shop-in-shops in the coming 18 months, the company said last week.
Macy’s chief merchandising officer Nata Dvir said that strong growth in the company’s already established toy arm made it seek new opportunities to expand its brand reach.
After Toys ‘R’ Us went bankrupt in 2017, the intellectual property of the brand was bought by a number of private equity groups, which created the now-parent company TRU Kids.
TRU Kids launched two experimental stores in 2019 under a ‘retail as a service’ platform which enabled brands who sell in store to manage their customer experiences as well as analyse how the in-store model translates to online conversions.
The new model meant that popular toy products and brands paid TRU Kids a subscription fee to include their product and interactive experiences in store, however TRU Kids took 100 per cent of the revenue.
However both locations were swiftly forced to close their doors this year due to the ongoing pandemic.
Macy’s move into toys continues a trend of the department store chain clearing its floor space for categories that are not fashion related.
US rival Kohl’s is following suit and has recently signed a deal with makeup brand Sephora as well as clearing space in its stores for Amazon returns and electronics.