Can Macy's Breathe New Life Into Toys R Us?

A new partnership will try, with two ways to buy toys through the department store

Department store Macy’s announced a partnership with Toys R Us, which will bring the toy brand to macys.com just in time for the 2021 holiday season, then to 400 Macy’s stores.

The Toys R Us integration on Macy’s ecommerce hub features toys by age, brand, character and type. In addition to popular toys, Macy’s said it is focusing on “products that highlight inclusivity, discovery and learning.”

Macy’s will also fulfill orders that start on ToysRUs.com, with the retailer promising “highly immersive and engaging content that seamlessly connects consumers to the toy offering at macys.com.”

In a similar vein, the 400 Toys R Us shop-in-shops planned for 2022 will include a welcome from spokesman Geoffrey the Giraffe, as well as “dedicated sections by age, interest and category, with interactive experiences, activation centers and iconic elements throughout.” The department store currently operates 514 U.S. stores, which will put Toys R Us in about 75% of Macy’s U.S. footprint.

Another reboot for a onetime titan

Toys R Us has tried the experiential tactic before. The toy retailer followed its 2017 bankruptcy with stores in Houston and Paramus, New Jersey in 2019. The smaller stores emphasized interaction, including both play and event spaces.

But then came the pandemic. The stores closed a little over a year later.

In a statement, Yehuda Shmidman, CEO of Toys R Us parent WHP Global, said the new partnership “changes the retail landscape by combining two beloved retail brands together for consumers across the nation in a completely innovative way.”

But, as Adweek previously reported, it’s a tough time for single-category retailers like Toys R Us when shoppers can buy everything—kitchen sink included—from online giants like Amazon and Walmart. And these players have quickly filled the void Toys R Us left behind in 2018. Analysts, however, have said adding experiential, local and/or service elements could help Toys R Us claw back some market share in the U.S.

Meanwhile, Macy’s, which has had its own share of struggles in recent years, is confident.

“Our toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination and create meaningful moments together,” Nata Dvir, Macy’s chief merchandising officer, said in a statement. “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.”