Recently, it was announced that Toys R Us is coming back as brick-and-mortar stores in the U.S. But as consumers are limiting discretionary spending, is this the best time for an expansion initiative? In this article, we will examine the specifics and you can decide for yourself…
Toys R Us Coming Back Has Been YEARS in the Making…
When Toys R Us filed for bankruptcy in 2017, it would go down as a retail cautionary tale — like Kmart and Blockbuster…
HOWEVER, TRU CLOSED DOWN DUE TO MASSIVE DEBT, NOT ITS BUSINESS MODEL.
This video from the Wall Street Journal YouTube channel breaks down the company’s rise and fall.
For that reason, WHP Global acquired the toy chain in 2021 with plans to bring the brand back from the dead. By that summer, Toys R Us was successfully coming back within Macy’s nationwide…
Simultaneously, the iconic retailer opened a massive location in New Jersey’s American Dream Mall. The 20,000-square-foot megastore includes:
- A two-story slide
- Ice cream shop
- Interactive experiences
Despite that, there has been no further word of store openings until now…
Expanding into “Air, Land, and Sea”
In September 2023, there was finally an official statement regarding Toys R Us coming back as physical locations. So far, the initiative includes 24 flagship stores in prime U.S. cities.
Additionally, there will be storefronts on cruise ships and in airports. The first of which will open its doors by November 2023 in the Dallas/Fort Worth International Airport.
The Chairman and CEO of WHP, Yehida Shmidman, stated:
“THE TOYS R US BRAND IS GROWING FAST AND OUR EXPANSION INTO AIR, LAND, AND SEA IS A TESTAMENT TO THE BRAND’S STRENGTH.”
Nonetheless, should the firm bet on the profitability of the nostalgic store?
The Potential of Toys R Us Coming Back
Believe it or not, Toys R Us coming back now is not as big a risk as you may think…
LAST YEAR, THE TOY RETAILER GENERATED $2 BILLION IN GLOBAL SALES!
Their numbers in Macy’s stores show they have the processes to operate successfully inside other chains as well. Alongside the rise of travel retail, there is solid evidence that this venture can pay off for WHP.
We suspect we will have answers after the upcoming holiday season.
At the very least, a whole new generation will have the chance to grow up as Toys R Us kids.
Be Great,
GCTV Staff
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