Paul Cerro's avatar
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Toys R Us is on the rebound
The toy category seems to be immune from the struggles others are facing amid inflation, making it a perfect time for Toys R Us to stage a comeback.

Let’s look at how Toys R Us has positioned for a rebound:
$7.9 billion: The amount of debt Toys R Us had in 2017, leading to filing for bankruptcy and closing all US stores, according to The Washington Post. In 2019, the company revived its website and opened two physical stores in New Jersey, which closed by January 2021.

Currently, one flagship store is open at the American Dream Mall in New Jersey.

August 2021: When Toys R Us and Macy’s partnered to bring the Toys R Us brand back with an online store and plans to roll out shop-in-shops in over 400 US Macy’s locations.

15 times: How much higher Macy’s toy sales were in the first quarter of 2022 compared to the period prior, attributed to the retailer’s Toys R Us partnership, leading to the rollout of shop-in-shops in every Macy’s US location.

$199.05 billion: Our predicted total retail sales of the toys and hobby category in 2022, a 6.4% increase from last year.

Why we care: The partnership between Toys R Us and Macy’s enables Toys R Us to build its portfolio again without any of the overhead of opening its own stores. As we look forward, don’t be surprised if the toy giant rides that success to further expansion.
Conor Mac's avatar
I remember Toys R' Us being such a heavenly place as a kid. Huge aisles, heaps of toys, none of which my parents would buy me. Oh the joys.
Paul Cerro's avatar
@investmenttalk Loved going to that place
Reasonable Yield's avatar
In today's age, why would someone shop online at Toys R Us when they can find the commoditised product anywhere else, and on Amazon?

Genuine question, not being snarky, just trying to see how you think of it.
Paul Cerro's avatar
@reasonableyield Amazon has a lot but it doesn't have everything.
Reasonable Yield's avatar
@paulcerro I wonder if the "everything" factor can even be attained now a days. Times have changed, and there are so many toys and brands out there. I am not certain the world needs Toys R Us anymore.

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