The New Toys “R” Us Store opens at Garden State Plaza in Paramus, New Jersey.
Source: Tru Kids Brand
Toys R Us has closed the only two stores in the US.
The legendary toy retailer made the decision based on the troubles caused by the Covid pandemic and plans to shift resources to opening new locations where there will be better buyer traffic, a spokesman for CNBC told CNBC in an email.
“Consumer demand in the toy category and for Toys R Us continues to be strong and we will continue to invest in the channels in which the customer wants to experience our brand,” said the person.
Toy sales in the United States rose 16% last year to $ 25.1 billion, market researcher The NPD Group reported Monday, as families turned to toys to keep children busy during the health crisis. However, a significant portion of these sales have gone online.
Tru Kids, a company that acquired the intellectual property of Toys R Us during its liquidation in 2018, opened two smaller stores in late 2019: one at Unibail-Rodamco-Westfield’s Garden State Plaza mall in Paramus, New Jersey, and one in the Simon Property Group’s Galleria in Houston. The Houston site closed on Jan. 15, the spokesman said, while the Paramus site closed on Tuesday.
Representatives from URW and Simon did not immediately respond to CNBC’s requests for comment.
Tru Kids still operates the Toys R Us website which ultimately sends customers to Amazon to complete a purchase after marketing toys. It continues to license the brand worldwide.
Many consumers have stayed away from brick and mortar stores during the pandemic and have instead bought more online. Malls retailers have suffered exceptionally. It will likely take some time for shoppers to get used to returning to the malls, and a retail research firm predicts that up to 10,000 store closings could be announced by retailers in the US this year, which would set a record.
Bloomberg first reported the Toys R Us closure on Friday.