Toys "R" Us To Open More Than 100 New Stores

By Sam Lewis

Global expansion includes 51 stores in China by end of 2013

On Wednesday, August 14, Toys “R” Us revealed it will open 100+ stores, including new stores, relocated stores, and the conversion of stores into side-by-side — Toys “R” Us and Babies “R” Us — format. These openings bring an addition of more than 900,000 square-feet of retail space to the Toys “R” Us brand.

The most significant plans for expansion in 2013 lie in China. Toys “R” Us has already begun operating many of the 22 stores it announced would open this year. By the end of 2013, the company will operate 51 stores in 27 cities across China. Growth is also taking place domestically. In the U.S. the company plans to open 19 new, relocated, or converted stores. This includes 9 outlet stores — the largest number the company has ever opened of these smaller stores — bringing the outlet store total to 25 nationwide. These outlet stores will make their debut in California, Georgia, Mississippi, Missouri, Tennessee, and Texas.

The world’s largest toy retailer, operating 1,500+ stores worldwide, began its integrated or side-by-side strategy in 2006. Approximately one in four Toys “R” Us stores have been converted to follow this format, providing shoppers in the market for children’s goods with a complete product line all under one roof.

It’s likely that Toys “R” Us had these new store openings in the works prior to February, when the company put a temporary halt on any extraneous efforts due to a couple of shocking developments. First, the retailer’s CEO, Jerry Storch, decided to resign from the position and take the role of chairman of the retailer’s board. Toys “R” Us has been under the guidance of Interim CEO Antonio Urcelay since May. Second, in late March, the company announced the withdrawal of plans to make company stock public to investors due to poor holiday sales. No announcement has been made regarding a re-instatement of the withdrawn public stock option.