Toys “R” Us is making a comeback in brick-and-mortar.
The retailer, which declared bankruptcy last March, is set to open two permanent stores in November as part of a joint venture agreement between parent company Tru Kids and retail tech start-up b8ta.
The partnership, which was announced today, would introduce Toys “R” Us stores to shoppers at Simon Property Group’s Galleria mall in Houston and Westfield Garden State Plaza in Paramus, N.J. — just in time for the holidays when the bulk of its business is done.
The smaller-format spaces will allow customers to view toys out of their boxes prior to making purchases as well as host brand demonstrations and on-the-ground playplaces. Unlike the 40,000 square feet that used to comprise a traditional Toys “R” Us store, the new locations will span about 6,500 to 10,000 square feet.
“As the retail landscape changes, so do consumer shopping habits,” said b8ta Co-founder and President Phillip Raub, who also serves as interim co-CEO of the joint venture. “But what hasn’t changed is that kids want to touch everything and simply play.”
The playground-like stores will be powered by b8ta’s retail-as-a-service platform, an all-in-one business model that provides services such as payment processing, loyalty programs and support. The companies plan to open more locations in major U.S. cities throughout 2020.
The move marks a new era for Toys “R” Us, which seeks to turn around its business after a hefty debt load, stemming from a private equity buyout, and heavy online competition led to its demise.
“With a 70-year heritage, the Toys ‘R’ Us brand is beloved by kids and families around the world and continues to play a leading role in the hearts and minds of today’s consumers,” said Richard Barry, Tru Kids CEO and interim co-CEO of the joint venture. “We have an incredible opportunity to entirely reimagine the Toys ‘R’ Us brand in the U.S.”
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