Good news Toys ‘R’ Us fans, the franchise will officially reopen several toy stores around the U.S. just in time for the 2019 holiday season. Time to start saving and clipping all the coupons you can, because Christmas will be a bit more expensive this year.
In September 2017, the toy retailer filed for a Chapter 11 reorganization, later liquidated its business last March after “falling prey” to several billion in debt due to competition from online retailers such as Walmart, Target and Amazon. In October of last year, a holding company called Geoffrey LLC won an auction for Toys ‘R’ Us assets acquiring Toys ‘R’ Us, Babies ‘R’ Us, as well as 20 other baby and toy brands. Later that Fall, it set up Geoffrey’s Toy Box pop-up stores in nearly 600 Kroger stores in 30 states. Now, the toy industry announced it is expected to launch an e-commerce site and several stores nationwide.
What will be different this time around? Well, new stores are said to be about a third of the size of “traditional Toys ‘R’ US outlets,” roughly 10,000 square feet, and will have play areas. Richard Barry, former Toys ‘R’ Us executive, has been trying to bring the chain back and is now the CEO of Tru Kids Brands, which took over the Toys R Us brand in February.
When it was first announced the toy chain was launching, Barry stated that despite unprecedented efforts to capture the United States market this past holiday season by other relatives, there is still a huge consumer demand left behind by the demise of Toys ‘R’ Us. Both brands remain powerful in the market, continuing to have brand loyalty with more than 9.5 million followers across their social media platforms.
So, is this a second chance for Toys ‘R’ Us to redeem itself? Yes, definitely. Let’s just hope they can keep their debt down this time around, and those trusty fans come visit more often. Welcome back, Toys ‘R’ Us. We’re excited about your next chapter!