Toys “R” Us Plans Its Biggest U.S. Store Expansion Since Bankruptcy

WHP Global is preparing the largest expansion yet of the Toys “R” Us physical footprint in the United States, using a multi-channel strategy built around flexible, partner-operated storefronts rather than massive suburban big-box stores.

Through a national partnership with Austin, Texas-based Go! Retail Group, the brand will open 120 new standalone stores in time for the peak fourth-quarter holiday shopping season. The additions will quadruple the company’s standalone U.S. store footprint, taking it from 40 to 160 locations nationwide.

Gideon Schlessinger, chief executive officer of Go! Retail Group, said the partnership aims to bring the physical retail experience to millions of holiday shoppers across the country. Founded in 1993, Go! Retail Group operates pop-up locations and specialty stores across the nation.

The specific municipal locations, individual square footages, opening dates, and lease terms for the 120 new sites have not been disclosed by WHP Global or Go! Retail Group. The companies also have not confirmed whether every newly added unit will remain open as a permanent location after the holiday rush concludes.

The new storefronts will follow an experiential retail model. They will carry merchandise from major global toy and entertainment franchises, including LEGO, Barbie, Hot Wheels, Pokémon, and “KPop Demon Hunters.” Select locations will include interactive Creator Studios equipped for content creation and product launch events hosted by digital influencers and toy manufacturers.

Certain stores will also house integrated cafés and candy shops. Jamie Uitdenhowen, executive vice president of Toys “R” Us at WHP Global, said in a statement, “This is a major moment for Toys ‘R’ Us as we significantly expand our presence across the United States.”

Uitdenhowen said the current growth plan depends on diversification across multiple distinct formats. Those formats combine standalone brick-and-mortar storefronts with department store shop-in-shops, airport travel hubs, and military base exchanges.

The shift away from the brand’s historic real estate model follows decades of operating large-format warehouse locations. Charles Lazarus founded the company in 1948 as Children’s Bargain Town in Washington, D.C.; it was rebranded as Toys “R” Us in 1957 and dominated American toy sales for decades.

A $6.6 billion leveraged buyout in 2005 by private equity firms Bain Capital and Kohlberg Kravis Roberts (KKR), along with real estate investment trust Vornado Realty Trust, left the corporation with more than $5 billion in debt. That financial strain limited the retailer’s ability to upgrade aging stores and invest in e-commerce infrastructure while digital competitors such as Amazon and big-box rivals including Walmart and Target expanded.

In September 2017, Toys “R” Us filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Virginia. By March 2018, it had begun the full liquidation of its U.S. operations, closing more than 700 stores and laying off approximately 30,000 workers nationwide. Founder Charles Lazarus died later that month at age 94.

After the liquidation, securing lenders formed Tru Kids Brands in 2019 to hold the remaining intellectual property assets. Tru Kids attempted a physical return later that year with two small-format, tech-focused experimental stores in Paramus, New Jersey, and Houston, Texas.

Both experimental locations permanently closed in January 2021 because of reduced mall traffic during the COVID-19 pandemic. In March 2021, brand management firm WHP Global acquired a controlling interest in Tru Kids Inc. and immediately reorganized the growth strategy around an asset-light, partner-driven framework.

Later in 2021, WHP Global opened a two-story, 20,000-square-foot flagship store at the American Dream complex in East Rutherford, New Jersey. The following year, the company reached a national deal with Macy’s to open dedicated Toys “R” Us shop-in-shops inside hundreds of Macy’s department stores nationwide.

Macy’s reported that toy sales in the first quarter of that rollout were 15 times higher than in the comparable period before the partnership. In 2023, WHP Global formalized its initiative with Go! Retail Group to carry out what executives called an “air, land and sea” expansion strategy aimed at capturing consumer traffic in non-traditional commercial locations.

The travel-focused branch began with the retailer’s first airport store, which opened at Dallas Fort Worth International Airport (DFW) in late 2023. In August, the company expanded its aviation presence to Florida through a partnership with WHSmith North America at Orlando International Airport (MCO); a second MCO location is scheduled to open in summer 2027.

The brand has also entered military retail through outlets established with the Navy Exchange Service Command (NEXCOM), giving active-duty service members and military families shopping access on bases.

Globally, the operational model supports more than $2 billion in annual retail sales through a network exceeding 1,680 branded store locations and e-commerce channels spanning 37 countries.