In this article:
- Toys “R” Us, which closed its own shops after serving a generation of shoppers, will find a new home in hundreds of Macy’s locations next year
- The Toys” R” Us site leads shoppers to merchandise currently offered for sale on Macy’s website in anticipation of the holiday season
Since its founding in 1948, the Toys “R” Us brand has become inextricably linked with childhood. All parents of a certain age remember the “I’m a Toys “R” Us kid commercials and likely felt some brand loyalty when it came time to buy for their own children.
But with the changing landscape of retail and the rise of eCommerce, Toys “R” Us could simply not keep up. In 2017 it filed for bankruptcy and closed hundreds of locations. There was a glimmer of hope in 2019 when Tru Kid Brands acquired it. But that was snuffed out when it totally folded and closed the last two retail locations in the United States at the beginning of this year.
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Never say die can certainly be applied here. As of August 19, ToysRUs.com, is officially property of Macy’s and reincarnated on the digital plane as a portal to macys.com/toysrus. Over 400 Macy’s store locations are also slated to include a Toys “R” Us store-within-a-store, a retail concept quite a few brands have adopted (see Sephora, at Kohl’s Near You. And Then Some).
In the press release on the Macy’s offering, Nata Dvir, Macy’s chief merchandising officer, said “As a Toys “R” Us kid, I could not be more excited to bring this beloved brand that so many of our customers know and love into Macy’s online and to our stores across America.”
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But she also admitted that it’s not just nostalgia driving this business decision for Macy’s but the surge in demand for toys that retailers enjoyed during the pandemic:
“Our toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination and create meaningful moments together. Toys “R” Us is a globally recognized leader in children’s toys and our partnership allows Macy’s to significantly expand our footprint in that category while creating more occasions for customers to shop with us across their lifestyles, ” she added.
In other words, the name recognition of the toy store brand could be of value in searches for toys that will help Macy’s distinguish itself from competing department stores that also carry toys. Another pandemic trend at play here — that of pushing holiday shopping earlier and earlier — is also manifested in the presentation of the Toys “R” Us collection at Macy’s site. Overall, though, this move is such a wonderful example of how customer-centric retailers think and act when they are prioritizing their customers’ needs. Brands who make growing through their existing customers are priority can see even more than 33% increase in customer lifetime value.