The shop-in-shop concept will roll out to 400 Macy’s store locations in 2022. The deal is a big opportunity for Toy “R” Us to get back into physical retail that also benefits Macy’s, which reported growth in its toy category in the past year.
“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.
The partnership between Toys “R” Us and Macy's is the most recent example of retail brands working together to attract customers and drive sales. The trend of using physical stores as a platform is gaining steam, and other major retailers have caught on. For example, Target recently opened its first Ulta shops within some of its locations this month, and Kohl’s snagged a deal with beauty retailer Sephora for a similar concept. Dollar General also debuted a store-within-a-store concept in July with its new Popshelf brand.
While Toys “R” Us stores in the U.S. have disappeared over the last few years, the retailer still does $2 billion in global retail sales annually through nearly 900 branded global stores outside the U.S. and e-commerce businesses in more than 25 countries. The new shops inside Macy’s will feature some of the same iconic Toys “R” Us brand identifiers, including Geoffrey the Giraffe.