Toys ‘R’ Us to Return in Macy’s Stores as Retailers Prosper

( In a sign that the retail landscape in the United States is improving, Macy’s announced this week that it will soon feature merchandise from Toys “R” Us in its stores around the country.

On Thursday, Macy’s announced that starting in 2022, it will feature products from Toys “R” Us at more than 400 of its stores across the U.S. The merchandise will be featured in what’s called a store-within-a-store type of format, according to an announcement made by Macy’s and WHP Global, which controls the brand of Toys “R” Us.

Toys “R” Us for years had thrived as a stand-alone toy store in America. In recent years, though, it began struggling to compete with online shopping and other larger stores that featured toys. Eventually, the company shut down almost every store it had across the country, but the brand didn’t fully disappear.

Macy’s had reported strong earnings recently, and shares of the company soared this week following its announcement that it will feature Toys “R” Us products within its stores.

Macy’s isn’t the only brick-and-mortar retail store to post strong earnings recently, though. Strong earnings were reported by large chains such as Target, Walmart, TJX — which owns Home Goods, TJ Max and Marshalls — as well as Kohl’s.

These brick-and-mortar retail stores struggled mightily at the beginning of the pandemic, as they were forced to close their doors across the country because of local state restrictions. Now, though, these retail stores are bouncing back in a big way, as consumers are returning to in-person shopping.

The Wall Street Journal even reported recently that Amazon has plans to potentially open a few retail shopping stores that would be similar in look to various department stores.

Sources told the WSJ that the plan would be to offer apparel, electronics and household items. The stores would also feature many of Amazon’s merchandise that is private label.

While officials from Amazon wouldn’t comment on the matter, the speculation is that Amazon wants to open physical retail stores so it could boost home furnishings and clothing sales, while also showing that the future of all retail is multi-channel — meaning both online and in person.

Macy’s officials issued similar statements when commenting on their new push to offer Toys “R” Us products in their stores next year. Jeffrey Gennette, the CEO of Macy’s, described the company’s customer as “increasingly omnichannel.” He said their customers visit stores sometimes but often buy products online later after they do more research.

He said:

“It used to be like five years ago you would have two touch points with a customer before they would consummate a transaction. It’s six now.”

Even as Macy’s has closed many of its stores across the country in recent years, it isn’t a signal that the company is in any way struggling. As can be seen, it’s just shifting its approach and expanding where it makes the most sense.