Some people never seem to grow up. A resurgent Toys “R” Us is hoping to take that fact to the bank.
The storied chain announced Thursday it was opening 120 standalone Toys “R” Us locations this holiday season. In total, 160 standalone stores will be open in time for Christmas, the company said. The chain is already featured at numerous Macy’s outlets across the country.
Expect to see many adults and even teens shopping for themselves at these locations, in addition to the usual holiday shopping for kids.
Toy sales among adult-only households have now outpaced households with children for toy sales, growing 16% through June, according to market research group Circana, equivalent to 55% of total toy industry receipts. Toy sales among all adults are growing 25%, only slightly behind the teen group at 33%. Together, teens and adults generated nearly 60% of the industry’s incremental dollar gains in the first half, Circana said.
The trends have helped toys see their strongest overall first-half-of-the-year sales in six years. It’s part of a broader trend toward so-called “analog” products in an increasingly digital world.
“We’re seeing toys increasingly function as hobbies, fandom ecosystems, and social experiences rather than traditional children’s products,” said Kristen McLean, vice president of client insights for Circana’s Entertainment Knowledge Group. “That’s expanding the consumer base and creating new opportunities for manufacturers and retailers that understand how to engage collectors, enthusiasts, gifters, and self-purchasers.”
Toys “R” Us didn’t mention adult collectors in its announcement.
The top toy brands today include Pokémon; major sports leagues like NFL, FIFA, and MLB; Marvel, Star Wars, Hot Wheels, and LEGO Botanicals, Circana said. Toys “R” Us named LEGO, Barbie, Hot Wheels, Pokémon, and KPop Demon Hunters as the top brands it plans to offer.
In its heyday, Toys “R” Us had more than 1,000 locations across the United States. But it filed for bankruptcy in 2017 as it was boxed out by larger rivals such as Walmart and Amazon amid a broader downturn in brick-and-mortar sales as e-commerce began to boom.
Today, Toys “R” Us is managed by WHP Global, a group backed by private equity that also oversees Babies “R” Us, as well as a suite of fashion brands including Express, Marc Jacobs and Vera Wang.