Toys R Us Stores May Be Making a Come Back

Iconic toy store Toys R Us has a new owner who may be planning to open up stores again.

New York-based brand management firm WHP Global, who already owns Anne Klein and Joseph Abboud is taking a controlling stake in Tru Kids Inc., the parent company of the iconic Toys R Us and Babies R Us brands.

Yehuda Shmidman, co-founder, chairman and CEO at WHP Global, has not offered the terms of the financial agreement in the deal with Tru Kids Inc.

Tru Kids was formed in January 2019 when it acquired Toys R Us’ intellectual property. Shmidman has been a vice chairman of Tru Kids since early 2019.

WHP has said however that it will be managing the global Tru Kids business, and guide its expansion. Toys R Us and Babies R Us together have over 900 branded stores in more than 25 countries on the continents of Europe, Asia, Africa, and Australia.

In North America, Shmidman has admitted that the plan is to open Toys R Us stores again. The openings could come in various formats including flagships, pop-ups, airport locations or mini stores inside other retailers’ shops. WHP hasn’t yet set a number for how many locations it plans to open in the U.S.

“There are so many malls that will no longer be in the future, so we don’t need to be there,” Shmidman said. “But we could be in malls that do have traffic. … So we really have an opportunity not just to capture that experience for toys that people are yearning for, but also capture where [people] want to shop. That will be very interesting post-Covid.”

“We’re in the brand business, and Toys R Us is the single most credible, trusted and beloved toy brand in the world,” said Shmidman. “We’re coming off a year where toys are just on fire. … And for Toys R Us, the U.S. is really a blank canvas.”

“The restructurings took a big toll on the company,” he added. “And then Covid is, hopefully, once in a century. But now we’re getting past those two things. And the sky’s the limit.”

The U.S. Toys R Us online business remains operational and Babies R Us generates more than $2 billion in global retail sales annually.

“Our investment in Toys R Us reflects our belief and passion for the brand,” said Shmidman. According to him, the U.S. business will consist of both online and physical stores, though the strategy is still being worked out.

“Could it be a shop in shop? Could it be a pop up store? Could it be an airport store? ” he asked. “We are exploring it all.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.