Toys "R" Us
| File:Toys "R" Us logo.svg Logo in use since September 22, 2007 | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded |
|
| Founder | Charles Lazarus |
| Headquarters | United States |
Number of locations | 4 stores (excluding 451 branded concessions inside Macy's) |
| Owner | |
| Website | toysrus |
Toys "R" Us is a U.S.-based retailer specializing in toys, apparel, and baby products, established by Charles Lazarus in April 1948 in Washington, D.C.
Initially operating under the name Children's Supermart, the business concentrated on baby furniture before rebranding to Toys "R" Us in June 1957. The company experienced swift growth throughout the 1970s and 1980s across the United States, emerging as a top toy retailer. By the mid-1980s, it expanded internationally with subsidiaries in countries such as Canada and the United Kingdom.
In September 2017, Toys "R" Us sought bankruptcy protection in both the U.S. and Canada. By June 2018, all remaining U.S. stores—approximately 200—were closed following bankruptcy proceedings, while some overseas divisions remained operational.
The global intellectual property rights for Toys "R" Us (excluding Canada) were acquired by Tru Kids, Inc. in January 2019. Tru Kids revealed a strategic alliance in August 2021 to launch over 400 Toys "R" Us outlets within Macy's stores beginning in 2022. Moreover, several independent stores opened from late 2021 onward, including flagship locations at the American Dream complex in New Jersey and the Mall of America in Minnesota as of November 2023.
Origins
In April 1948, Charles P. Lazarus founded Children's Supermart, a retailer specializing in baby furniture located in Washington, D.C., leveraging the post-World War II baby boom era. The company was purchased by Interstate Department Stores, Inc. in 1966.
By June 1957, Lazarus redirected the company's focus solely toward toys and inaugurated the first Toys "R" Us store in Rockville, Maryland. He also created the iconic logo featuring a reversed "R," which became a key branding element. The firm expanded its market presence by aligning with popular culture trends and distributing major toy franchises such as Star Wars, G.I. Joe, Cabbage Patch Kids, along with video game series like Nintendo's Super Mario. This well-curated product lineup established Toys "R" Us as a leading force within the toy retail sector throughout the latter part of the twentieth century.
21st century
In May 2000, John Eyler—formerly associated with FAO Schwarz—was appointed CEO by the board to rejuvenate the company’s performance. Eyler launched a store renovation initiative amid rising competition from retailers such as Walmart and Target, which also led to considerations about separating the toy and baby product divisions. On March 17, 2005, a group including Bain Capital Partners LLC, Kohlberg Kravis Roberts (KKR), and Vornado Realty Trust completed a $6.6 billion leveraged buyout, transitioning Toys "R" Us into private ownership. Following this transaction, stock prices closed at $26.75 on July 21, 2005—a gain of 63% from when the sale was announced. Although privatized, the company maintained SEC filings due to obligations tied to its debt structure.
During December 2013, Toys "R" Us extended its U.S. store hours to operate continuously for up to 87 hours during the holiday period to counteract an almost 9% drop in customer visits and increase revenue. The flagship store at Times Square remained open around-the-clock from December 1 through December 24 to attract tourists. This approach necessitated hiring an additional workforce of about 45,000 seasonal employees to manage heightened demand. Given the seasonal nature of toy retailing, over 40% of annual sales typically occur during the final quarter.
In 2014, Toys "R" Us introduced its "TRU Transformation" strategy aimed at decluttering stores, improving customer experience, clarifying pricing and promotions, and integrating physical retail with online platforms. The following year saw the debut of the "Toy Lab" concept store in Freehold, New Jersey—offering interactive displays and play zones designed to boost engagement and sales. This concept was subsequently rolled out to various locations across California, Delaware, Florida, New York, and Pennsylvania.
Bankruptcy
On September 18, 2017, Toys "R" Us initiated a Chapter 11 bankruptcy filing to address $5 billion in long-term liabilities, securing $2 billion in financing intended to pay suppliers and support operations during the holiday period. The retailer had not recorded an annual profit since 2013 and reported a net loss of $164 million for the quarter ending April 29, 2017. With annual debt servicing expenses reaching $400 million, the company faced constraints in investing sufficiently to compete against e-commerce leaders such as Amazon and Walmart. Analysts highlighted that the rapid accumulation of debt under private equity ownership played a major role in the company’s financial difficulties. At the time of filing, approximately 64,000 employees were on the payroll.
Initially, the bankruptcy impacted only the US and Canadian divisions; both physical stores and online sales remained operational. In January 2018, plans were revealed to shut as many as 182 US outlets and transform up to 12 into co-branded Toys "R" Us and Babies "R" Us locations. By February, the company considered preserving profitable Canadian stores and converting some corporate-owned US locations into franchises, targeting a reduced footprint of around 200 stores. However, by March, all US stores were scheduled for closure.
The bankruptcy court approved liquidation of US retail locations on March 15, 2018. Interest surfaced from potential buyers aiming either to acquire groups of stores for showroom purposes or to obtain the brand name and intellectual property. The Canadian segment remained profitable and was put up for sale; it was subsequently acquired by Fairfax Financial for roughly $234 million to continue operations under the Toys "R" Us banner. Fairfax also showed interest in purchasing certain US locations as part of its expansion plans.
Isaac Larian, CEO of MGA Entertainment, submitted multiple bids—including an $890 million offer that was ultimately rejected—to acquire hundreds of US stores but was unsuccessful. Liquidation sales commenced on March 23, with the online storefront closing on March 29.
By June 29, 2018, all remaining US Toys "R" Us outlets ceased operations permanently, concluding a seven-decade tenure in retail. Shortly after closure, unidentified purchasers acquired leftover inventory from two North Carolina stores to donate to charitable causes.
The absence of Toys "R" Us during the 2018 holiday season created an estimated $4 billion void in toy sales that competitors quickly exploited. Notably, Party City introduced temporary pop-up shops branded as Toy City to occupy former Toys "R" Us locations.
Restructuring, Tru Kids, Inc., WHP Global, and Subsequent Restructurings
On October 1, 2018, the company sought bankruptcy court approval to stop the auction process for its intellectual property as its primary lender aimed to revive both Toys "R" Us and Babies "R" Us brands by preserving licensing arrangements and developing new retail channels. The decision was made based on an assessment that selling the brand at auction would not produce better results.
During the Toy Industry Association's Fall Toy Preview event, plans were unveiled for Geoffrey's Toy Box, a wholesale store-within-a-store concept designed for the holiday season. This initiative formed part of a broader strategy to relaunch both Toys "R" Us and Babies "R" Us brands. In November 2018, grocery retailer Kroger partnered to showcase toy displays under Geoffrey's Toy Box branding in select locations, featuring Toys "R" Us private-label merchandise. Geoffrey LLC holds management over the intellectual property involved in these endeavors.
On January 20, 2019, following restructuring efforts, the company formally exited bankruptcy under the new name Tru Kids, signaling a strategic shift toward brand revitalization through partnerships and licensing agreements.
Relaunch
On June 21, 2019, the company revealed intentions to launch new U.S. retail outlets approximately 10,000 square feet in size, about one-third the footprint of the previous large-format stores. The first of these reopened locations debuted on November 27, 2019, at Westfield Garden State Plaza in Paramus, New Jersey, followed shortly by a second store at The Galleria in Houston, Texas, opening on December 7, 2019.
The Toys "R" Us website was relaunched on October 8, 2019, offering toy-related content and videos. Initially, order fulfillment was handled through a partnership with Target; however, in 2020, the company transitioned to using Amazon for this service.
Both U.S. stores closed in January 2021 due to financial setbacks linked to the COVID-19 pandemic. The company indicated this move was part of a strategic shift towards innovative store formats and platforms designed to boost brand interaction.
On March 15, 2021, WHP Global acquired majority control of Tru Kids—the parent entity of Toys "R" Us and Babies "R" Us—and assumed operational leadership with ambitions to broaden retail operations across North America. WHP’s strategy includes launching various retail formats such as flagship stores, pop-up shops, airport outlets, and smaller stores within other retailers. This acquisition was supported by a $350 million equity investment from Oaktree Capital Management.
In August 2021, WHP collaborated with Macy’s to retail Toys "R" Us merchandise online and establish store-within-a-store concepts at approximately 400 Macy’s department stores nationwide.
A flagship location covering 20,000 square feet opened in December 2021 at the American Dream Meadowlands mall in East Rutherford, New Jersey. By August 2022, Toys "R" Us had expanded its presence inside Macy’s across nine states with store sizes ranging from 1,000 to 10,000 square feet. The company aimed to have a Toys "R" Us section in every Macy’s by October 2022 ahead of the holiday shopping period.
In November 2023, a second flagship store was inaugurated at Mall of America in Bloomington, Minnesota. On September 29, 2023, WHP announced plans to open 24 additional standalone U.S. stores beginning in 2024 along with smaller venues at airports and cruise ships; the first airport location launched in November 2023 at Dallas Fort Worth International Airport.
In 2024, Toys "R" Us introduced a standalone outlet at Harlem Irving Plaza mall located in Norridge, Illinois.
On June 5, 2025, the Australian division of Toys "R" Us entered voluntary administration following years of financial losses. This development came after the company’s liquidation in 2018 and its continuation as an online retailer under Hobby Warehouse since 2019.
Flagship store in Times Square
On November 17, 2001, Toys "R" Us unveiled a $35 million flagship store spanning 110,000 square feet in New York City’s Times Square. The store showcased themed areas such as Barbie (featuring a life-size dreamhouse), Jurassic Park (highlighting an animatronic T-Rex), Lego, and included a signature indoor Ferris wheel. It also functioned as a gaming destination through a partnership with Microsoft that premiered the original Xbox console on November 15, 2001. By 2006, the store had enhanced its entertainment offerings by adding a Dance Dance Revolution SuperNova arcade game and later introduced a full-scale amusement arcade named "R"Cade.
In August 2017, Toys "R" Us announced a seasonal pop-up store occupying 35,000 square feet near its original Times Square location for the holiday shopping season.
Charitable contributions
Between 2004 and its closure in 2018, Toys "R" Us Inc. collaborated with the Toys for Tots foundation, serving as a collection point for unwrapped toys and monetary donations. This alliance was a key element of the company's corporate social responsibility efforts. Since the bankruptcy filing in 2018, there is no evidence that Tru Kids Inc., the current owner, has continued this partnership.
Safety standards for products
In 2007, Toys "R" Us established rigorous safety protocols and pledged to enforce vendor accountability. Former chairman and CEO Gerald L. Storch advocated for enhanced toy safety legislation and launched initiatives to provide prompt recall updates, including a dedicated online platform.
By 2008, the retailer adopted safety criteria exceeding federal mandates, such as restricting lead levels in exclusive merchandise to 250 parts per million—well below the federal threshold of 600 ppm—and prohibiting phthalates in infant products. These efforts corresponded with the Consumer Product Safety Improvement Act of 2008, underscoring Toys "R" Us's dedication to consumer protection and regulatory adherence.
Motion picture
In April 2025, a feature film produced by Story Kitchen alongside Toys “R” Us Studios was announced, marking the brand’s entry into the entertainment sector. Toys "R" Us has been featured in films including The Blues Brothers (1980), Eloise at Christmastime (2003), which prominently displayed its Times Square flagship store, and Roofman (2025). Moreover, Spirit Halloween: The Movie (2022) was shot at a former Toys "R" Us location, demonstrating the brand’s cultural impact beyond retail operations.
Imaginarium
Imaginarium functioned as a private label brand for most toys sold by Toys "R" Us after its acquisition in 1999. It also operated independent retail outlets until 2004.
Kids "R" Us
Kids "R" Us was a discount apparel chain for children that debuted its initial stores in February 1983 in Paramus, New Jersey, and Brooklyn, New York. Due to declining same-store sales, the chain shuttered in January 2004 as the company refocused on the core Toys "R" Us brand. While standalone Kids "R" Us stores closed by 2003, locations within Toys "R" Us stores continued until roughly 2007.
Babies "R" Us
Babies "R" Us launched its first location in April 1996 in Westbury, New York. In 1997, Toys "R" Us acquired Baby Superstore, Inc., a chain of 78 stores, for $376 million and rebranded those outlets as Babies "R" Us. The brand specialized in products for infants through toddlers and expanded to around 260 stores across the United States. It also provided services such as registries and prenatal/postnatal educational classes.
In 2011, Babies "R" Us expanded its presence by establishing co-branded departments within new and renovated Toys "R" Us stores.
The brand was revived in July 2023 with a flagship store at the American Dream mall located in East Rutherford, New Jersey. In May 2024, plans were announced to introduce 200 store-within-a-store locations inside Kohl’s department stores nationwide, with openings commencing in fall 2024.
FAO Schwarz
In May 2006, Toys "R" Us took ownership of the toy retailer FAO Schwarz, which included its iconic Fifth Avenue location in New York City as well as the online store FAO.com. Although the flagship store ceased operations on July 15, 2015, due to escalating lease expenses, FAO Schwarz-branded products continued to be sold within Toys "R" Us and Babies "R" Us outlets until 2017.
Toys "R" Us Express
During the 2009 holiday period, Toys "R" Us introduced a compact store format called "Holiday Express," launching 90 locations throughout the United States and Canada. Positioned primarily in shopping malls, these stores featured a more limited product assortment compared to the traditional Toys "R" Us superstores. Many of these sites were established in spaces left vacant by shuttered retailers during the economic downturn, including former KB Toys stores. Although initially intended to close after January 2010, strong sales performance prompted several to remain open under the name "Toys "R" Us Express." By May 2010, this concept expanded to 600 locations, with some being converted into outlet stores. These Express and outlet stores were shuttered across the U.S. by mid-2018.
Online operations
Toys "R" Us launched its online retail platform Toysrus.com in 1998 to sell toys via the internet. Following a disappointing holiday season in 1999 marked by delivery issues, the company entered into an exclusive supply agreement with Amazon in 2000 for a decade. However, Amazon violated this contract by permitting third-party sellers on its site, citing Toys "R" Us's narrow product selection as justification. In response, Toys "R" Us filed a lawsuit against Amazon in 2006 and was awarded $51 million in damages by 2009.
By 2012, Toysrus.com was ranked No. 29 in the Internet Retailer Top 500 Guide and stood among the leading specialty retailers for toys and baby products online. Complementing this was Babiesrus.com, which offered an extensive range of baby items along with registry services.
In February 2009, Toys "R" Us broadened its e-commerce presence by acquiring the bankrupt online toy retailer eToys.com; financial details of the deal were not disclosed. Additionally, the company purchased the Toys.com domain for about $5.1 million to promote exclusive offers across its digital platforms.
Online sales experienced substantial growth, rising from $602 million in 2009 to $782 million in 2010—a 29.9% increase. In April 2011, Toys "R" Us opened a dedicated fulfillment center for e-commerce operations in McCarran, Nevada. Online revenue reached $1 billion in 2011 and increased further to $1.1 billion in 2012.
Under Tru Kids management, the Toys "R" Us website was relaunched in 2019 through a collaboration with Target, redirecting purchases to Target.com for order fulfillment. Fulfillment responsibilities shifted to Amazon in 2020 before moving again to Macys.com in 2021 under a new partnership agreement.
Mascot
Originally introduced as "Dr. G. Raffe" during advertisements for Children's Bargaintown in the 1950s, Geoffrey the Giraffe eventually became Toys "R" Us's official mascot, making his television debut in 1973. Over more than five decades, Geoffrey's appearance was refreshed multiple times until settling on the star-patterned design unveiled in 2007.
In 2017, Toys "R" Us capitalized on its mascot’s appeal by sponsoring the live broadcast of April the Giraffe’s pregnancy, significantly enhancing brand exposure while supporting wildlife conservation efforts. This viral marketing campaign attracted millions of views across YouTube and social media platforms, exemplifying effective brand promotion aligned with corporate social responsibility initiatives.
See also
Further reading
- Jamie Morgan & Muhammad Ali Nasir (2020) "Financialised Private Equity Finance and the Debt Gamble: The Case of Toys R Us." New Political Economy.
- "Charles P. Lazarus: The Titan of Toys "R" Us" by Anne Koopman, 1991