NEW YORK — In a bid to capitalize on “exponential” year-over-year growth in its toy business, Macy’s confirmed Thursday its partnership with the owner of Toys R Us to bring a wide array of toys, games and gadgets to more than 400 of its upscale department store locations in 2022.
“Our toy business grew exponentially for Macy’s in the past year,” Nata Dvir, Macy’s chief merchandising officer, told CNBC, noting the partnership will allow the chain to “significantly expand” its footprint in the category.
Specifically, the new “shop-in-shops” format targets millennial moms because younger parents tend to buy additional higher-margin items while buying toys for their children, Macy’s CEO Jeff Gennette said during a Thursday conference call, the network reported.
Likewise, the measure is intended to help counteract stiff online competition from big-box retailers Walmart and Target, Dvir told CNBC.
According to USA Today, Toys R Us filed for bankruptcy in March 2018, closing all U.S. stores within three months. The company announced a comeback the following year, and opened two stores under new ownership, but the pop-up mall location stores closed earlier this year.
Meanwhile, brand management company WHP Global acquired a controlling interest in Tru Kids, the parent company of the Toys R Us, Babies R Us and Geoffrey the Giraffe brands.
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