Toys “R” Us was in the headlines last year when the toy giant liquidated its assets following a bankruptcy filling in September 2017. It was also previously revealed that there are plans for a new company, Tru Kids, to arise, and it seems as if those are finally coming to fruition.

What We Know

Bloomberg reported that the retailer would be returning at some point this year. When it returns, it will have smaller stores, around six in number. There will also be an e-commerce site. Each of those new, smaller stores will be about a third of the previous Toys “R” Us stores. This translates to around 10,000 square feet.

Following the Earlier Announcement of Tru Kids

We first learned about the new entity, called Tru Kids, Inc., earlier this year. Richard Barry, a former executive with Toys “R” Us, is the company’s new CEO. Although the plans are not public, sources indicate that Barry has spent plenty of time recently to pitch his ideas of reinventing the toy store chain. This apparently included efforts during an industry conference in June. As of now, Tru Kids is not sharing any details publicly. Some sources who claim to be in the know, however, have revealed some possibilities.

Possible Features of the Stores

Sources indicate that the new Toys “R” Us stores will offer more experiences instead of focusing solely on selling toys. This will come in the form of play areas for kids to enjoy. Others have indicated that the toy chain may minimize its startup costs by using a consignment inventory model. In this situation, the toymakers would send the goods to Toys “R” Us but only receive payment when consumers buy the products.

Competition and the Future of Toys “R” Us

Even with its planned return, Toys “R” Us or Tru Kids will have many obstacles to overcome. Industry experts point out that other retailers, including Amazon, Walmart, and Target, filled the gap left by Toys “R” Us when it closed its stores. All of those companies expanded their marketing and toy selections to pick up previous Toys “R” Us customers.

Toys “R” Us may also face challenges in convincing toymakers to work with them again. After all, most of the major toymakers suffered financial losses when Toys “R” Us filed for bankruptcy and liquidated assets. The good news for Toys “R” Us is that MGA Entertainment Inc. will definitely work with them, giving the toy store access to Bratz, Little Tikes, and L.O.L. Surprise!

Time will tell how Toys “R” Us handles its re-launch and whether the company learned from its past mistakes.

Source:

https://www.cnbc.com/2019/06/21/toys-r-us-to-reportedly-open-new-stores-later-this-year.html

https://www.bloomberg.com/news/articles/2019-06-21/toys-r-us-back-from-the-dead-will-open-u-s-stores-in-2019?utm_medium=social&cmpid=socialflow-facebook-business&utm_content=business&utm_source=facebook&utm_campaign=socialflow-organic

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