Toys“R”Us Is Revitalized With Latin American Locations

Toys“R”Us is making a comeback in an unusual way. The once-popular toy retailer is getting a new lease on life with Latin American launches. Let’s take a look at what we know about this comeback.

Toys“R”Us First Stop in Latin America: Panama

In a press release, it was revealed that Toys“R”Us’s parent business, WHP Global, announced a collaboration with Cotton Candy International to introduce the Toys“R”Us and Babies“R”Us brands to Latin America and the Caribbean. With plans to develop more freestanding locations throughout the area, Cotton Candy International will open its first flagship stores in Panama in 2025 as part of the partnership.

A major turning point in Toys“R”Us’s worldwide growth plan, the expansion into Latin America and the Caribbean comes after the company’s recent successful launches in important international countries, such as Mexico.

“Toys“R”Us continues to captivate consumers around the world, and we are thrilled to partner with a strong wholesale and retail operator like Cotton Candy International to introduce this beloved brand to families in Latin America for the very first time,” said Stanley Silverstein, chief commercial officer at WHP Global. “This expansion underscores our commitment to delivering the joy of Toys“R”Us to new markets and families everywhere.”

In 2025, further information on the store rollout in Latin America and the Caribbean will be made public. With both physical retail locations and online platforms, the stores are already present in more than 32 countries and are still growing internationally.

What About Flagship Stores?

In 2023, the once-popular toy retailer made an announcement to launch flagship stores across the United States. The announcement came six years after the company initially announced its Chapter 11 bankruptcy filing, and five years after it closed its final United States retail store.

The new initiative is a component of the chain’s “Air, Land, and Sea” expansion strategy, according to WHP Global, which purchased a majority stake in Toys“R”Us in 2021. After purchasing the company, WHP Global in the United States opened a single, standalone, 20,000-square-foot, two-story store with an ice cream shop and a two-story slide at the American Dream mall in New Jersey in December 2021.

The flagship stores — which were originally scheduled to open in 2024 — will be positioned to complement the Macy’s in-store outlets and mirror the American Dream mall. To capitalize on its current logistics infrastructure, Go! Retail Group, which runs toy and game stores in malls across the United States under the Go! Toys & Games and other brands, will run them.

The first airport store, run by travel merchant Duty Free Americas, debuted at the Dallas Fort Worth International Airport last November, capitalizing on a robust rebound in air travel.

“We now have over 1,400 stores and e-commerce sites across 31 countries, and as we head into 2024, we are excited to bring Toys“R”Us to consumers everywhere, whether you’re visiting one of our stores at Macy’s, at our flagships, in an airport, or onboard a cruise ship,” said Yehuda Shmidman, chairman and CEO of WHP Global, in a statement at the time.

Retail professionals, however, see this move as a bit of a short-term fix rather than a long-term solution. “I think it could work as a kind of a novelty in the short-run,” Lars Perner, an assistant professor of clinical marketing at the University of Southern California Marshall School of Business, told the New York Times. “I’d be hard-pressed to see this being successful in the long run.”

Prices from rivals like Amazon, Target, and Walmart will continue to pose a threat to the toy shop. During the holiday selling season, the three frequently employ toys as loss leaders.