Source: Fortune
Summary
Toys “R” Us is opening 120 new U.S. stores this holiday season, nine years after its bankruptcy and closure of over 800 locations. The expansion targets both children and adults, with a focus on collectibles, trading cards, and fandoms. Sales of toys for adults rose 25% in the first half of 2026, according to Circana. The company plans to use Creator Studios in some stores for product launches and events. Executives say the brand’s nostalgia and appeal to adult shoppers are key to the strategy.
Our Reading
The numbers tell one story.
Toys “R” Us is betting on nostalgia and adult spending to fuel a comeback.
Stores will be smaller, less expensive, and tied to pop culture.
Executives say the brand’s power is still strong, but the model is different.
The real test is whether adults will make the trip for toys, not just the memory.
Author: Evan Null
The kids grew up. So did their toy budget
Adults still have their inner child at heart—only now, they have their adult money. Things like the Sonny Angel craze, or Labubu collectors lining up for blind boxes are nothing new. LEGO, meanwhile, sells flower bouquets and elaborate display sets aimed at adults. Toys “R” Us is trying to give those shoppers a familiar place to browse, even if the next must-have toy first caught their eye online.
“We’re not trying to recreate the Toys ‘R’ Us of the past,” Uitdenhowen said. The company plans to sell toys tied to popular characters and fandoms, with some stores featuring Creator Studios—spaces where toy brands and creators can film videos and unveil products, and host launch events. Fans can attend an event in the locations featuring these studios, while the videos reach people watching from the comfort of their home.
Think of Jellycat’s plush toys, which have been around since 1999, long before they became a social-media craze. But recently, the brand’s in-store experiences have shown how a trip to buy a toy can become an event worth filming and sharing. Toys “R” Us is betting the studios can make toy launches similarly shareable, both inside the store and online.
The company is also targeting adult collectors, who are increasingly buying toys for themselves. The strategy includes events, in-store experiences, and digital engagement to draw shoppers back.
But the challenge remains: can nostalgia and new formats convince adults to leave their couches and make a trip to a toy store?
Geoffrey the Giraffe is back, but his stores are smaller
The Toys “R” Us shoppers remember isn’t what’s coming back, though. Gerald Storch, who led the chain from 2006 to 2013 and now runs a retail consulting firm, told Fortune he expects the new stores to be smaller and require less investment than the traditional locations he once ran. He compared them to pop-up kind of stores like the ones in malls and shopping centers.
Neil Saunders, managing director and retail analyst at GlobalData, told Fortune nostalgia is only part of what’s drawing adults back to toys. “People are looking more for those kinds of craft-based, quiet activities where they can just take a moment out and sort of disconnect from the noisy world.”
Saunders also said the old Toys “R” Us didn’t collapse simply because shoppers lost interest. In 2005, Bain Capital, KKR and real estate firm Vornado Realty Trust bought the chain in a $6.6 billion deal financed heavily with debt. By the time Toys “R” Us filed for bankruptcy in 2017, it was carrying more than $5 billion in debt. That left it with little financial room to adapt as shopping habits changed.
Still, Storch sees an advantage in a brand that people remember. “The brand’s incredibly powerful,” Storch told Fortune, calling the expansion a “smart move.” But he cautioned against measuring the comeback by store count alone. By his estimate, 100 of the smaller stores might generate the sales volume of just a handful of traditional Toys “R” Us locations.
Toys “R” Us faces the challenge that parents shopping for their children still care about price and convenience. Saunders said that can send them to Amazon, Walmart or Target, where they can have toys delivered or pick them up alongside everything else on their shopping lists.
Adults are buying toys, but will they come back?
The expansion would bring Toys “R” Us to 160 standalone U.S. stores for the holidays. The company also said many of the new locations are expected to remain open well into 2027, though it will evaluate their performance and shoppers’ response.
As Storch put it, “I’m sure everyone will make an assessment after the holidays of how many of these stores will stay open.”
The company’s new model is smaller, more focused, and more digital. But it’s unclear if the same magic will return. Nostalgia can only carry a brand so far.
There’s a lot of hype around the return, but the real test is whether adults will keep coming back for more than just a trip down memory lane.
The question is not just about opening stores, but about keeping them open.
The new Toys “R” Us is not the old one
The company is not trying to recreate the past. Instead, it’s adapting to a new market where adults are buying toys for themselves. The focus is on collectibles, fandoms, and in-store experiences that can be shared online.
But the challenge is that the retail landscape has changed. Online shopping, big-box stores, and changing consumer habits have made it harder for traditional retailers to compete.
Toys “R” Us is trying to find a niche in this new world. It’s not just about selling toys—it’s about creating an experience that people want to share and return to.
The company’s success will depend on whether it can turn nostalgia into a sustainable business model.
For now, the return of Toys “R” Us is more about reinvention than revival.
The future of toy retail is uncertain
Despite the excitement around the new stores, the future of Toys “R” Us remains unclear. The company is entering a market that’s different from the one it left behind.
With so many options for toy shopping, the challenge is to make the in-store experience worth the trip. That means more than just nostalgia—it means offering something new and valuable.
The company’s strategy includes events, digital engagement, and partnerships with toy brands. But it’s not clear if that will be enough to attract and retain customers.
There’s a lot of pressure on Toys “R” Us to succeed. If it fails, it could be another chapter in the long story of retail’s struggles.
For now, the company is taking a chance on nostalgia—and hoping it’s enough to bring people back.
