Walk into almost any Macy's flagship nowadays and you’ll see that familiar, grinning giraffe. Geoffrey is back. But if you’re asking yourself did Macy’s buy Toys R Us, the answer is actually a bit more nuanced than a simple "yes" or "no." In the world of corporate restructuring and brand licensing, things rarely involve a straightforward acquisition where one company just gobbles up another's entire existence.
Macy's didn't buy the company. They bought into the magic.
To get the full picture, you have to look at the wreckage of 2017 and 2018. That’s when the "Toy King" officially fell. Debt was piling up like a mountain of unsold LEGO bricks. After a disastrous holiday season and a failed bankruptcy reorganization, the original Toys R Us essentially dissolved. But brands—especially brands that hold that much nostalgia—don't just die. They get passed around like a hot potato by investment firms.
The WHP Global Connection
Here is where it gets interesting. In 2021, a brand management firm called WHP Global acquired a controlling interest in Tru Kids Inc., which was the parent company that owned Toys R Us and Babies R Us after the initial liquidation. WHP Global didn't want to just sell toys online; they wanted a physical footprint.
They needed a partner. They needed a massive department store with existing foot traffic and a desperate need to attract millennial parents.
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Macy's was that partner. Instead of an outright purchase, the two companies entered into an expansive long-term partnership. Macy's basically gave Toys R Us a "shop-in-shop" lease on life. By the end of 2022, Macy's had expanded these toy departments to every single one of its brand-name stores across the United States. So, while Macy's doesn't own the trademark or the intellectual property of Toys R Us, they are the exclusive physical home for the brand in the U.S. retail market.
Why the "Store-within-a-Store" Model Works
Retailers are terrified of "dead space." You've probably seen it—those dusty corners of a department store where the lighting is dim and the mannequins look like they haven't been changed since 1994. Macy's CEO Jeff Gennette saw the toy category as a way to fix that.
During the pandemic, toy sales went through the roof. People were stuck at home and bored. By bringing Toys R Us into the fold, Macy's saw a triple-digit increase in toy sales compared to the period before the partnership. It's a symbiotic relationship. Macy's provides the real estate and the logistical backbone, and Toys R Us provides the "destination" factor.
Parents who wouldn't normally step foot in a Macy's to buy a suitcase or a new suit are now dragging their kids there for a birthday present. Once they're inside? Maybe they pick up a pair of Levi's or some Clinique moisturizer. It’s the oldest trick in the retail book, but it’s working surprisingly well in a digital-first world.
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The Scale of the Rollout
It wasn't a small experiment. We are talking about hundreds of locations.
The shops range from 1,000 square feet in smaller suburban malls to a massive 14,000-square-foot flagship presence in places like Herald Square in New York City or Union Square in San Francisco. They even brought back the interactive elements. You'll see life-sized "Geoffrey on a Bench" photo ops and demonstration tables where kids can actually touch the toys. This is a far cry from the sterile, plastic-wrapped experience of buying something on Amazon.
Misconceptions About Ownership
A lot of people think that because the Toys R Us website often redirects or integrates with Macy’s, they must be the same company. Honestly, it's an easy mistake to make.
But if you look at the SEC filings or the corporate press releases from WHP Global, the distinction is clear. WHP owns the brand. They manage the global licensing. They’re the ones making deals to open Toys R Us stores in airports (like the one in Dallas Fort Worth) or in international markets like the UK and Australia. Macy's is essentially the most powerful "franchisee" or partner in the world for this specific brand, but they don't call the shots on the global expansion of the giraffe.
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What This Means for the Future of Retail
This partnership tells us a lot about where shopping is going. The "big box" standalone toy store is mostly a relic of the past. The overhead is just too high. By shrinking the footprint and tucking it inside an existing department store, the brand survives without the crushing weight of independent rent and utility bills.
It also highlights the power of "Brand Equity." Toys R Us had a reputation that survived a total financial collapse. That's rare. Most companies that go bankrupt stay dead. The fact that did Macy's buy Toys R Us is still such a common question shows that the public still views the two as a singular, powerful entity in the retail landscape.
What You Should Do Next
If you’re looking to relive the nostalgia or just need to grab a gift, don't go looking for a standalone building with a rainbow sign. You won't find many, if any, outside of a few "flagship" concepts.
- Check the Macy's App: Before you head out, use the Macy's store locator. While almost all stores have a toy section, the size varies wildly. The "Flagship" locations are the ones with the big displays and the wide selection.
- Look for "Star Rewards" Overlap: Since Macy's manages the sales, you can use your Macy's credit card and rewards points on Toys R Us purchases. This is a huge perk that you wouldn't get if they were completely separate entities.
- Don't ignore the "Toys R Us at Macy's" online portal: It’s often the best way to check local stock before you drive to the mall.
- Watch for seasonal pop-ups: During the holidays, the square footage of these departments often doubles. If you’re a collector looking for specific "Geoffrey" themed merch, October through December is the prime window.
The partnership has proven that even in an era dominated by screens, people still want to walk down an aisle of bright boxes. Macy's didn't buy the company, but they might have saved its soul.