The name Toys R Us evokes powerful memories for generations. For many, it was the destination for birthday gifts, holiday shopping, and the simple joy of browsing aisles filled with endless possibilities. The story of Toys R Us, however, is more complex than just toys and childhood wonder. It’s a narrative of retail innovation, market shifts, and ultimately, a hard-fought comeback. A central question remains: who currently steers this iconic brand? Understanding the ownership of Toys R Us today requires a look back at its turbulent recent history.
The Rise and Fall (and Rise Again) of Toys R Us
Toys R Us began as Children’s Bargain Town in 1948, founded by Charles Lazarus. Recognizing the potential in the burgeoning post-war baby boom, Lazarus transformed his baby furniture store into a dedicated toy supermarket. This innovative approach, offering a vast selection at competitive prices, propelled Toys R Us to become a dominant force in the toy retail landscape.
For decades, Toys R Us reigned supreme. Its large-format stores, recognizable branding, and comprehensive inventory created a unique shopping experience. The company expanded globally, reaching markets across the world and solidifying its position as a leader in the toy industry. The “I don’t wanna grow up, I’m a Toys R Us kid” slogan became deeply embedded in popular culture.
However, the retail landscape began to change dramatically in the late 1990s and early 2000s. The rise of big-box retailers like Walmart and Target, offering toys at lower prices as loss leaders, put significant pressure on Toys R Us. The emergence of online shopping, led by Amazon, further eroded the company’s market share.
Toys R Us struggled to adapt to these evolving market conditions. It carried a heavy debt burden from a 2005 leveraged buyout by private equity firms Bain Capital, Kohlberg Kravis Roberts (KKR), and Vornado Realty Trust. This debt limited the company’s ability to invest in store improvements, online capabilities, and competitive pricing.
In September 2017, Toys R Us filed for Chapter 11 bankruptcy protection. The company hoped to restructure its debt and revitalize its business. However, these efforts proved unsuccessful, and in March 2018, Toys R Us announced it would be liquidating its U.S. operations, closing all of its stores. This marked the end of an era for many.
The closure of Toys R Us stores left a significant void in the toy retail market. However, the story didn’t end there. The brand’s intellectual property, including the Toys R Us name, Geoffrey the Giraffe mascot, and associated trademarks, remained valuable.
The Acquisition and Rebirth Under WHP Global
In 2021, WHP Global acquired the Toys R Us brand from Tru Kids Inc., the successor company to Toys R Us after its initial bankruptcy. This acquisition marked a new chapter for the iconic toy retailer. WHP Global is a brand management firm that specializes in acquiring and revitalizing consumer brands.
WHP Global saw the potential to revive Toys R Us by leveraging its brand recognition and nostalgic appeal. The company developed a multi-pronged strategy that focused on strategic partnerships, smaller-format stores, and a strong online presence.
Yehuda Shmidman is the Chairman and CEO of WHP Global. His leadership has been instrumental in the revitalization of Toys R Us. Shmidman and his team recognized that the traditional big-box retail model was no longer viable for Toys R Us. They focused on creating a more experiential and engaging shopping experience that would appeal to modern consumers.
WHP Global’s strategy involved partnering with existing retailers to open Toys R Us shop-in-shops. These partnerships allowed Toys R Us to quickly re-establish a physical presence without the significant investment required to open standalone stores. The most notable partnership has been with Macy’s.
Starting in 2022, Toys R Us shop-in-shops began opening within Macy’s department stores across the United States. These locations offer a curated selection of toys, interactive displays, and play areas, creating a more immersive and engaging shopping experience for children and families.
The Macy’s partnership has been a key component of WHP Global’s strategy to revitalize Toys R Us. By leveraging Macy’s existing infrastructure and customer base, Toys R Us has been able to reach a wide audience and quickly re-establish its brand presence.
In addition to the Macy’s partnership, WHP Global has also focused on expanding Toys R Us’s online presence. The ToysRUs.com website has been relaunched with a wide selection of toys, games, and other products. The company has also invested in digital marketing and social media to reach a wider audience.
WHP Global’s Broader Portfolio and Vision
While Toys R Us is a prominent part of WHP Global’s portfolio, it is not the only brand under its management. WHP Global owns a diverse range of consumer brands across various categories, including fashion, home, and lifestyle. Some of the other brands owned by WHP Global include Anne Klein, Joseph Abboud, and Isaac Mizrahi.
WHP Global’s strategy is to acquire brands with strong heritage and brand recognition and then revitalize them through strategic partnerships, product innovation, and digital marketing. The company focuses on building long-term value for its brands by leveraging their existing strengths and adapting them to the changing needs of consumers.
The acquisition and revitalization of Toys R Us is a prime example of WHP Global’s brand management expertise. By recognizing the brand’s potential and developing a comprehensive turnaround strategy, WHP Global has successfully brought Toys R Us back to life.
WHP Global’s vision for Toys R Us is to create a leading omnichannel toy retailer that offers a seamless shopping experience across physical stores and online channels. The company is committed to investing in product innovation, customer service, and technology to ensure that Toys R Us remains a beloved brand for generations to come.
The future of Toys R Us under WHP Global looks promising. The company’s strategic partnerships, focus on experiential retail, and investment in digital channels position it for continued growth and success. While the retail landscape remains competitive, Toys R Us has a strong brand heritage and a renewed focus on meeting the needs of modern consumers.
The International Landscape of Toys R Us
While WHP Global owns the Toys R Us brand and manages its operations in the United States, the international landscape of Toys R Us is more complex. In some countries, Toys R Us continues to operate under different ownership structures.
For example, in Canada, Toys R Us operates as a separate entity owned by Fairfax Financial Holdings. Toys R Us Canada has continued to operate throughout the bankruptcy and restructuring of the U.S. operations.
In Asia, Toys R Us operates under a joint venture between Fung Retailing and Toys R Us (Asia) Limited. This joint venture manages Toys R Us stores in several countries, including China, Japan, and Southeast Asia.
The international operations of Toys R Us have generally been more successful than the U.S. operations in recent years. This is due in part to differences in market conditions and consumer preferences.
WHP Global’s strategy for Toys R Us includes working with its international partners to expand the brand’s global reach. The company is exploring opportunities to open new stores in international markets and to expand its online presence globally.
The international landscape of Toys R Us is an important part of the brand’s overall story. While WHP Global focuses on revitalizing the brand in the United States, the continued success of Toys R Us in other countries demonstrates the brand’s enduring appeal and global potential.
Key Figures Involved in the Toys R Us Revival
Several key figures have played important roles in the revival of Toys R Us under WHP Global’s ownership. These individuals have brought their expertise and vision to the task of revitalizing the iconic toy retailer.
- Yehuda Shmidman: As the Chairman and CEO of WHP Global, Shmidman has been the driving force behind the acquisition and revitalization of Toys R Us. His leadership and strategic vision have been instrumental in the brand’s comeback.
- Jamie Salter: As the Founder, Chairman and CEO of Authentic Brands Group (ABG), Jamie Salter has also been involved in the resurgence of Toys ‘R’ Us, helping to guide the brand’s strategy and partnerships.
- The Macy’s Leadership Team: The leadership team at Macy’s, led by CEO Jeff Gennette, has been a crucial partner in the revitalization of Toys R Us. Their commitment to creating engaging shop-in-shops within Macy’s stores has been a key factor in the brand’s comeback.
These individuals, along with their respective teams, have worked tirelessly to bring Toys R Us back to life. Their dedication and vision have been essential to the brand’s continued success.
Challenges and Opportunities for Toys R Us
Despite its successful comeback, Toys R Us still faces challenges in the competitive retail landscape. The company must continue to adapt to changing consumer preferences and the rise of online shopping.
One of the biggest challenges for Toys R Us is differentiating itself from other toy retailers. The company must offer a unique and engaging shopping experience that cannot be replicated by online retailers or big-box stores.
Another challenge is managing the complexities of operating a global brand. Toys R Us has a presence in many different countries, each with its own unique market conditions and consumer preferences.
However, Toys R Us also has significant opportunities for growth. The company can leverage its brand recognition and nostalgic appeal to attract customers of all ages.
Toys R Us can also expand its product offerings to include more exclusive and collectible items. This would appeal to serious toy collectors and create a sense of scarcity that could drive sales.
The company can also continue to invest in its online presence and create a more seamless shopping experience across all channels. This would allow customers to shop for toys whenever and wherever they want.
The Future of Toys R Us: What’s Next?
The future of Toys R Us under WHP Global’s ownership looks bright. The company has successfully relaunched the brand in the United States and is expanding its presence both domestically and internationally.
WHP Global is committed to investing in product innovation, customer service, and technology to ensure that Toys R Us remains a beloved brand for generations to come.
One area of potential growth for Toys R Us is in the experiential retail space. The company can create more interactive and engaging shopping experiences that go beyond simply buying toys.
For example, Toys R Us could host in-store events, such as toy demonstrations, meet-and-greets with popular characters, and birthday parties. These events would attract families to the stores and create a sense of community.
Toys R Us could also partner with other brands to create unique and exclusive products. This would help the company differentiate itself from other toy retailers and attract customers who are looking for something special.
Ultimately, the success of Toys R Us will depend on its ability to adapt to the changing needs of consumers and to create a shopping experience that is both fun and convenient. With WHP Global’s leadership and investment, Toys R Us is well-positioned to thrive in the years to come.
Analyzing the Ownership: WHP Global and its Partners
Understanding the ownership of Toys R Us isn’t just about knowing WHP Global is in charge. It’s also about recognizing the intricate web of partnerships that support its resurgence. WHP Global, while the primary owner and driving force, relies on key collaborations to execute its vision.
The partnership with Macy’s, as mentioned before, is pivotal. It provides instant access to physical retail space and a built-in customer base. This strategic alliance is a prime example of how WHP Global leverages existing infrastructure to minimize risk and maximize reach.
Furthermore, the licensing agreements and international joint ventures play a crucial role. These agreements allow WHP Global to extend the Toys R Us brand into new markets and product categories without the need for direct investment.
Therefore, the ownership structure is best described as a combination of direct ownership by WHP Global and strategic partnerships that contribute to the brand’s overall success. This model allows for agility, scalability, and a diversified approach to revitalizing the Toys R Us brand. It moves away from the old model of complete ownership and control and embraces the interconnectedness that defines modern retail. This hybrid approach is likely the key to sustained growth and success.
Impact of the Acquisition on the Toy Industry
The acquisition of Toys R Us by WHP Global has had a significant impact on the toy industry. The closure of Toys R Us stores in 2018 created a void in the market that other retailers have been trying to fill.
The resurgence of Toys R Us under WHP Global has brought renewed competition to the toy retail landscape. Other retailers, such as Walmart, Target, and Amazon, have had to step up their game to compete with the revitalized Toys R Us.
The return of Toys R Us has also benefited toy manufacturers. The company’s renewed focus on product innovation and exclusive items has created new opportunities for toy companies to develop and market their products.
The acquisition has also brought a renewed focus on the importance of the physical retail experience. WHP Global’s emphasis on creating engaging shop-in-shops within Macy’s stores has demonstrated the value of brick-and-mortar retail in the toy industry.
Overall, the acquisition of Toys R Us by WHP Global has been a positive development for the toy industry. It has brought renewed competition, new opportunities for toy manufacturers, and a renewed focus on the importance of the physical retail experience.
FAQ 1: Who currently owns Toys R Us?
Answer: Toys R Us is currently owned by WHP Global, a brand management firm headquartered in New York City. WHP Global acquired the Toys R Us and Babies R Us brands, intellectual property, and associated assets in 2021. This acquisition marked a significant step in WHP Global’s portfolio expansion and its entry into the toy and baby products retail sector.
The acquisition by WHP Global allowed the Toys R Us brand to be revitalized and relaunched in various formats. They have focused on partnerships with existing retailers like Macy’s to create in-store Toys R Us sections, as well as online presence and international expansion. WHP Global aims to leverage the iconic brand recognition of Toys R Us while adapting to the modern retail landscape.
FAQ 2: What happened to Toys R Us that led to its previous bankruptcy?
Answer: Toys R Us filed for Chapter 11 bankruptcy in September 2017. This was primarily due to a massive debt burden accumulated from a leveraged buyout in 2005 by private equity firms Bain Capital, KKR, and Vornado Realty Trust. This debt restricted the company’s ability to invest in its stores, improve its online presence, and compete effectively with the rise of e-commerce giants like Amazon and discount retailers.
Furthermore, Toys R Us struggled to adapt to changing consumer preferences and shopping habits. The company’s physical stores became less appealing compared to online shopping and the convenience offered by other retailers. The combination of overwhelming debt and an inability to innovate ultimately led to the liquidation of Toys R Us’ US operations in 2018.
FAQ 3: How is the current Toys R Us different from the company that declared bankruptcy?
Answer: The current Toys R Us operates under the ownership of WHP Global, which focuses on brand management and licensing. This model is different from the previous company, which was primarily a retailer with a large physical store presence. WHP Global’s strategy involves partnering with other retailers to bring the Toys R Us brand back to consumers.
Instead of solely relying on standalone stores, the current Toys R Us primarily exists as branded sections within other retailers like Macy’s. This reduces the financial burden of operating numerous individual locations and allows the brand to leverage existing retail infrastructure and customer traffic. They also maintain an online presence, focusing on e-commerce and partnerships to reach a broader audience.
FAQ 4: What role does Macy’s play in the current Toys R Us revival?
Answer: Macy’s is a key partner in the revival of Toys R Us in the United States. WHP Global has partnered with Macy’s to create Toys R Us sections within Macy’s department stores across the country. These sections are designed to recreate the nostalgic experience of shopping at Toys R Us, featuring interactive displays, toy demonstrations, and a wide selection of toys.
The partnership benefits both companies. Macy’s attracts more customers by offering the beloved Toys R Us experience within its stores, while WHP Global leverages Macy’s existing retail footprint and customer base to re-establish the Toys R Us brand. This collaboration allows Toys R Us to reach a wider audience without the substantial overhead costs associated with operating standalone stores.
FAQ 5: Is Toys R Us operating in other countries besides the United States?
Answer: Yes, Toys R Us continues to operate in several international markets. While the US operations experienced a significant restructuring, the Toys R Us brand maintains a presence in countries like Canada, Australia, and various locations across Asia and Europe through licensing agreements and partnerships. These international operations were not directly affected by the US bankruptcy.
The international Toys R Us stores are often independently owned and operated under franchise agreements with the brand owner. This allows for localized adaptations to meet the specific needs and preferences of consumers in each region. The success of these international markets demonstrates the continued global appeal and recognition of the Toys R Us brand.
FAQ 6: What are WHP Global’s plans for the future of Toys R Us?
Answer: WHP Global aims to further expand the Toys R Us brand through strategic partnerships and innovative retail concepts. Their focus is on creating engaging and memorable experiences for customers, both online and in physical locations. This includes expanding the range of exclusive products and developing interactive displays to enhance the shopping experience.
WHP Global also intends to leverage the brand’s strong online presence and e-commerce capabilities to reach a wider audience. They are exploring new partnerships with other retailers and platforms to offer Toys R Us products and experiences in diverse settings. The overall strategy is to revitalize the brand while adapting to the evolving retail landscape and consumer demands.
FAQ 7: Can you still shop at a standalone Toys R Us store in the US?
Answer: Standalone Toys R Us stores are no longer a widespread presence in the United States. After the company’s liquidation in 2018, almost all of the original standalone stores were closed. While there have been limited attempts to open standalone stores, these have generally been temporary pop-up locations or smaller-scale concepts.
The primary way to experience Toys R Us in the US is through the branded sections within Macy’s department stores. These sections offer a wide selection of toys and create a dedicated space for the Toys R Us brand, providing a shopping experience reminiscent of the original stores, albeit within a different retail environment.