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Toys 'R' Us will open 750 shops in Macy's department stores

Toys 'R' Us and Macy's are expanding expansion in a major partnership.
Toys R Us

WHP Global, owner of Toys 'R' Us since 2021, has signed a new partnership agreement with department store chain Macy's. According to the signed agreement, the iconic retailer's children's toy stores will appear in all of the chain's department stores.

Macy's and WHP Global announced the partnership last year, opening shop-in-shop format stores in major cities across the country. To date, stores are operating in flagship department stores in New York, Chicago, Atlanta and Miami.

Macy's Herald Square

Beginning in late July and continuing through mid-October, the partners plan to roll out the retail chain in time for the holiday shopping season. Toys 'R' Us will open at Macy's in formats ranging from 1,000 to 10,000 square feet.

WHP Global was originally expected to open about 400 stores during the year. But the new agreement assumes that the retailer will be able to lease space in all 750 Macy's department stores, greatly increasing its presence in the U.S. market.

For such a brand with a long history, this is indeed a significant step forward since the chain was liquidated in bankruptcy in 2018. Under the new partnership, Macy's will provide merchandising for the store-in-store format, while Toys 'R' Us will be responsible for customer service.

Toys R Us - Depositphotos

Macy's noted that "customer response to the partnership with Toys R Us has been incredible and the toy business has seen tremendous growth." In the first quarter of 2022, in-store toy sales doubled on average and tripled in the fourth quarter.

Although Toys 'R' Us leases significantly less space today than in years past, it could theoretically be expanded by another 500 to 3,000 square feet by the holidays. Macy's is also planning a series of holiday events in October with "family friendly activities" and toy giveaways to attract even more customers to Toys 'R' Us stores.

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