Toys “R” Us Plans 120 New U.S. Stores Ahead of Holiday Season

NEW YORK — Toys “R” Us plans to open 120 standalone stores across the United States ahead of the holiday shopping season, bringing its U.S. standalone total to 160. The smaller stores will target adult collectors as well as children and parents in the retailer’s largest physical expansion since its 2017 bankruptcy and the closure of more than 800 domestic stores.

The move comes as older shoppers drive growth in the toy market. U.S. toy sales rose 17% in the first half of 2026, according to retail data from market research firm Circana, with purchases by and for adults up 25%.

“Our customer base now extends well beyond kids and parents,” Jamie Uitdenhowen, executive vice president at Toys “R” Us parent brand management firm WHP Global, said in a statement. “Adults are increasingly buying toys, collectibles, and trading cards for themselves, and fandom has become an important part of the category.”

The new stores will use compact, modular layouts suited to high-traffic malls and shopping centers rather than the roughly 30,000- to 45,000-square-foot big-box format of the former chain. Select locations will have “Creator Studios,” areas where toy brands and digital content creators can unveil products live, record promotional broadcasts and hold interactive fan events.

Those events are intended to connect in-store shopping with the online attention surrounding collectibles, including Sonny Angel figurines, Labubu blind boxes, display-oriented Lego botanical collections and high-end Jellycat plush toys. Such products have generated substantial consumer engagement across social media platforms. “We’re not trying to recreate the Toys ‘R’ Us of the past,” Uitdenhowen said, describing a model that combines in-person events with the digital reach of creator-led product launches.

WHP Global acquired a controlling interest in Toys “R” Us parent company Tru Kids Inc. in 2021. It has since tested other ways to sell under the brand, including flagship sites at high-profile developments such as New Jersey’s American Dream mall, airport travel stores and dedicated shops inside hundreds of Macy’s department stores nationwide.

The approach differs from the financial structure that weighed on the old chain. In 2005, private equity firms Bain Capital and KKR and real estate investment trust Vornado Realty Trust bought Toys “R” Us in a $6.6 billion leveraged buyout. More than $5 billion in debt sharply limited capital spending as shoppers moved toward e-commerce and mass merchandisers. The debt load ultimately forced the retailer into Chapter 11 bankruptcy in September 2017; its U.S. store fleet was liquidated in 2018.

Walmart, Target and Amazon captured significant portions of the toy market after that liquidation, using low prices and broad grocery or household assortments to draw everyday shoppers. Neil Saunders, managing director and retail analyst at GlobalData, said winning over parents who favor one-stop convenience remains a challenge. He also noted that some adult demand reflects a desire for non-screen leisure, including craft-based, tactile activities that offer a break from digital environments.

Former Toys “R” Us Chief Executive Gerald Storch, who led the company from 2006 to 2013 and now heads retail consultancy Storch Advisors, called the expansion a smart move and said the brand’s consumer recognition remains a competitive asset. “The brand’s incredibly powerful,” he said. But he cautioned against comparing sales without accounting for store size: by his estimates, roughly 100 of the new small-format stores could together generate sales equivalent to only a handful of the former warehouse locations.

WHP Global will judge the 120 new stores by fourth-quarter holiday sales and foot traffic. “I’m sure everyone will make an assessment after the holidays of how many of these stores will stay open,” Storch said. Several locations are currently slated to operate regularly well into 2027.