Toys R Us is coming back next year for holidays, teaming up with Macy’s

Toys R Us and Macy’s said they are teaming up to open hundreds of toy stores inside the largest department-store chain in the US.

Starting next year, some 400 Macy’s stores will include a Toys R Us section including a giant Geoffrey the Giraffe, the companies said on Thursday.

The shop-in-shops will include toys for all age groups, as well as so-called “activation centers” where kids can play with the toys, a popular feature Toys R Us was known for when it operated more than 800 stores across the country.

“Our toy business grew exponentially in the past year,” Nata Dvir, Macy’s chief merchandising officer said in a statement. “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.”

The iconic toy chain, which largely disappeared from the retail landscape after its trying to make a comeback ever since.

Several pop-up stores were closed earlier this year WHP Global took a controlling stake in Toys R Us this year.

The Toys R Us partnership is expected to “quintuple” the size of Macy’s toy business, Macy’s chief executive Jeff Genette said during an earnings call on Thursday.

“We will do lots of marketing together. You will see them in the parade as an example,” Genette added. 

Founded by Charles Lazarus in 1957, Toys R Us dealt a huge loss to the domestic toy industry when it collapsed four years ago. 

There are more than 900 Toys R Us stores that generate more than $2 billion in sales outside the US. 

The pandemic, however, has fueled significant demand for toys from families hunkered down at home. The greatest challenge now are supply chain problems that have stranded millions of toys overseas, particularly in China, where the vast majority of toys are manufactured.

Some retailers and toy companies have expressed concern about having enough toys for the holiday season and have warned about price increases.