What Happened To Toys ‘R’ Us?

As far as chain toy stores go, Toys “R” Us used to be the undisputed giant in the industry in the United States. However, the retail powerhouse has since gone through radical changes since its market peak. Here’s what happened to Toys “R” Us.

What Happened To Toys ‘R’ Us?

Founded in Washington, D.C. in 1948, Toys “R” Us began as a children’s furniture store under the name Children’s Bargain Town until shifting its focus exclusively to toys as it expanded into Maryland in 1957. Though the company grew steadily in the ‘70s and ‘80s, it began to experience stiff competition from the rise of superstores like Walmart and Target by the late ‘90s. After years of being a publicly traded company on the stock market, Toys “R” Us quietly underwent a $6.6 billion buyout to become a private company once again in 2005.

Across the subsequent decade, Toys “R” Us experimented with its business strategy to maintain and grow its customer base, including changing its stores’ layouts, revamping its online promotions, and revamping pricing. In 2014, the brand launched a concept store, Toy Lab, in New Jersey, gauging to see if a more interactive retail experience could help attract more customers to its locations. After initial results, the business expanded Toy Lab to additional locations around the United States.

All of these changes to Toys “R” Us’ business strategy proved ineffective, however, with the company formally filing for bankruptcy in September 2017. According to the filing, the company hadn’t generated an annual profit since 2013, with speculation that the company going private had accelerated diminishing business. Throughout the first half of 2018, physical store locations closed around North America, with the last owned directly by the company closing in June 2018.

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What Is the State of Toys ‘R’ Us Now?

By October 2018, Toys “R” Us decided not to sell off its branding, instead pivoting to the store-within-a-store concept Geoffrey’s Toy Box. Though the main brand officially relaunched, under the corporate name Tru Kids, in January 2019, its planned rollout was significantly impacted by the COVID-19 pandemic the following year. This resulted in the closure of all its physical store locations once again while the company reevaluated its strategy.

In August 2021, the company announced it had partnered with Macy’s to open locations within Macy’s department stores. Since then, the brand has continued to grow, announcing plans in September 2023 to open more standalone physical stores as well as smaller locations inside airports and cruise ships. Toys “R” Us may not be at the same retail heights it enjoyed in the ‘80s, but the fan-favorite toy store chain is far from being dead.