Toys R Us Will Open Five NEX Shops
The expansion will bring the total number of Toys R Us shop-in-shops inside Navy Exchange stores to 13.
Updated on Sept. 24, 2026 in Retail
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Toys R Us will expand its retail footprint with five new shop-in-shops inside Navy Exchange (NEX) locations, including stores in San Diego and Italy. These new retail spaces are scheduled to open on Oct. 17, 2026.
Why it matters
The shop-in-shop strategy has successfully driven year-to-date toy category growth at NEX stores. By placing these dedicated zones within existing retail environments, the brand continues to leverage foot traffic while providing interactive experiences.
Five new shop-in-shops are set to open, bringing the total number of NEX locations featuring the brand to 13. This expansion follows the initial launch of the partnership between the two entities in 2024.
The players
Toys R Us
This is a global toy retailer known for its large-format stores and its mascot, Geoffrey the Giraffe.
Navy Exchange Service Command
This organization manages retail stores for the United States Navy to serve military members and their families.
The details
Toys R Us utilizes a shop-in-shop concept within existing Navy Exchange Service Command stores to reach military families. The new sites will feature interactive displays centered around the brand mascot, Geoffrey the Giraffe.
Timeline
The first Toys R Us shops launched within NEX stores in 2024.
The five new shop-in-shops are scheduled to open on Oct. 17, 2026.
Market Landscape
This move represents a deepening of the partnership between the two entities within the competitive toy retail environment. It highlights a broader industry shift toward maximizing physical footprint through collaborative store-within-a-store formats.
Military families in San Diego, Italy, and other selected regions will gain access to dedicated in-store toy experiences. Customers can expect expanded product availability and interactive zones at these specific NEX locations starting in mid-October.
The takeaway
Retailers continue to find value in embedded, smaller-scale shop formats to drive category growth in niche markets. Shoppers should look for these interactive zones to offer more hands-on product engagement than traditional shelf displays.
Further reading
For more on industry shifts, visit our Retail section.
Source note: This article includes information reported by The Toy Book.
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Do you believe retail partnerships within military exchanges improve the shopping experience for service members?
