Here’s Geoffrey!

Toys “R” Us closed all of its stores after filing for bankruptcy in 2018. The iconic toy store brand ultimately failed as a business after taking on a substantial amount of debt during a buyout that took the company private.

Now the Toys “R” Us brand is making a comeback through a partnership with Macy’s (M). Toy stores ranging in size will open inside existing Macy’s over the coming months, offering unique experiences such as photo opps with a life-sized Geoffrey the giraffe and toy demonstration tables.

Failure to Relaunch

Since Toys “R” Us first shuttered its doors several years ago, several unsuccessful comeback attempts have been made. The Macy’s partnership came to be after WHP Global bought the Toys “R” Us brand from Tru Kids Inc., which originally acquired it in a liquidation sale. Tru Kids Inc. had opened some stores in Texas and New Jersey, but they were closed in early 2021 amid the pandemic.

Macy’s agreed to sell Toys “R” Us products on its website just under a year ago, which was around the time when ToysRUs.com also started selling items. Macy’s also opened 400 “shops-within-shops” at its US department stores.

Competitive Toy Market

The Toys “R” Us partnership has benefited Macy’s. Within its first-quarter earnings report, Macy’s said its toy sales were 15% higher than the comparable period, dating back to before the Toys “R” Us deal.

It’s been a relatively strong 2022 for Macy’s, which has outperformed its competitors, such as big-box retailers Target (TGT) and Walmart (WMT). For many American families, going to Toys “R” Us was a rite of passage around the holidays. Macy’s hopes that tradition can continue — within its own doors.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS22072002

The post Call It a Comeback: Toys “R” Us Is Coming to a Macy’s Near You appeared first on SoFi.