Toys 'R' Us Will Open 120 New Stores for Holidays
The retailer plans to expand its physical footprint as the holiday shopping season approaches.
Updated on Sept. 18, 2026 in Retail
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Toys 'R' Us will open 120 new standalone stores across the United States in time for the 2026 holiday shopping season. This expansion brings the company's total number of standalone locations to 160.
Why it matters
The company is working to rebuild its physical presence following its 2017 bankruptcy while capitalizing on a growing trend of adult consumers purchasing toys. This pivot addresses shifts in market demand as retailers adjust to changing demographics in the toy industry.
The new stores will occupy smaller footprints between 3,500 and 7,500 square feet. Toys 'R' Us currently operates 40 standalone stores, a significant reduction from the 750 locations held before its 2017 bankruptcy filing.
The players
Toys 'R' Us
This American toy retailer is currently attempting to rebuild its physical store presence nationwide.
Go! Retail Group
This company is partnering with the retailer to facilitate the expansion of its physical store footprint.
Macy's
This department store chain maintains ongoing shop-in-shop retail locations for the toy brand.
The details
In partnership with Go! Retail Group, the company is launching these sites at locations including Woodbury Common, The Westchester, and the Mall at Short Hills. While maintaining existing shops inside Macy's department stores, these new standalone units function on flexible one-year leases.
Timeline
2005: A $6.6 billion leveraged buyout was completed by private equity firms.
2017: The company filed for bankruptcy and initiated store closures.
H1 2026: US toy sales increased by 17 percent.
Holiday season 2026: The 120 new retail locations are scheduled to open.
Market Landscape
This aggressive expansion follows the 2017 Toys 'R' Us bankruptcy, marking a strategic attempt to recover lost market share. By utilizing smaller retail formats, the firm is repositioning itself to compete more effectively against current big-box and online competitors.
Shoppers can expect increased access to the brand through these smaller storefronts arriving before the holiday season. The strategy reflects an effort to meet the preferences of adult toy buyers who now account for a majority of sales in the category.
The takeaway
Retailers are increasingly pivoting their physical strategies to cater to the growing "kidult" demographic that now drives significant revenue. Consumers should expect to see more specialized, smaller-format stores as brands move away from massive warehouses to flexible, short-term lease locations.
Further reading
For more information on current industry trends, visit the Retail section.
Live Poll
Do you plan to shop at physical toy stores this holiday season?
