Deal with Macy’s no risk to various other retailers, experts saybySerenah McKay|August 26, 2021 at 2:02 a.m.

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A girl hugs the toys “R” us mascot, Geoffrey, in ~ a keep in Paramus, N.J., in this record photo. Playthings “R” united state is to open shops in an ext than 400 Macy’s department stores following year.(AP)

Walmart Inc. Doesn"t seem worried that the reentry of playthings "R" Us right into the U.S. Industry will reduced into that is toy sales. Experts are in agreement.

Macy"s Inc. Claimed last week that playthings "R" us will open up shops inside more than 400 Macy"s room stores following year. Shoppers can already buy toys "R" us merchandise online with Macy"s website, the department store chain said in an Aug. 19 news release.

Toys "R" us filed for Chapter 11 bankruptcy reorganization in 2017 and also closed that is U.S. Stores in a 2018 liquidation. The top toy retailer still operates shop in Canada and also a couple of other countries, and its e-commerce company serves an ext than 25 countries, Macy"s said. Globally, playthings "R" united state generates more than $2 billion in sales, the company said.

"Our partnership v Macy"s marks the substantially anticipated return of toys "R" us in the U.S.A., and changes the retail landscape by combining two beloved retail brands with each other for consumers across the nation in a fully innovative way," said Yehuda Shmidman, chief executive, management officer of toys "R" us parent firm WHP Global.

But Walmart claimed in a statement that it"s not making any kind of changes concerned Toys "R" Us" go back to the U.S. Market.

"Walmart is America"s ideal toy shop, and also we are preparing because that the upcoming vacation season just like we would any type of other," Walmart spokeswoman Leigh Stidham said. "We"re excited come surprise and delight our customers v the hottest toys of the season in ~ our daily low prices and also look forward to sharing an ext soon."

The U.S. Toy sector market is worth $32.6 billion, according to The NPD Group/Consumer Tracking Service. And retail experts say toys "R" us at Macy"s has tiny chance that nabbing any type of of Walmart"s share in the market.

Steve Dennis, president and founder of SageBerry Consulting LLC, said it"s feasible that toys "R" united state at Macy"s could have an impact on Walmart, "but it"s hard to view that it will certainly be a big deal."

"Walmart has means more locations, means more traffic" in-store and online, and perhaps a stronger giving -- "though I mean that remains to it is in seen," Dennis said.

Keith Anderson, senior vice president of strategy and insight because that e-commerce analysis firm Profitero, put it even much more bluntly.

"In regards to a resurrected toys "R" united state impacting Walmart"s sales, i think the price is a resounding no," Anderson said. "Awareness and interest in playthings "R" united state is really low, and it bring away a lengthy time come build earlier awareness, interest and also trust."

And come Sucharita Kodali, a Forrester research study vice president and principal analyst who worked at playthings "R" united state years ago, "to to speak that playthings "R" us has had or will have a "resurgence" is a joke."

"It to be barely moving anything meaningful in its critical days and the assorted attempts such as small-format stores and also what-not aren"t really anything to talk about," Kodali said. "Why Macy"s would even need playthings "R" united state is baffling, uneven there is one investor group buying the inventory and it"s a store-in-store that requires nothing indigenous Macy"s other than handing end space."

"There is no merchandise the Macy"s couldn"t resource on its own in the toy industry," Kodali said.

A extremely successful firm for 70 years, toys "R" Us started to tank in the U.S. As Amazon overcame online shopping and also Walmart and also Target Corp. Ramped up your e-commerce businesses, industry experts said at the time. Playthings "R" united state was no positioned to complete in the sphere, castle said.

And playthings "R" Us said in that liquidation filing that Walmart, Target and also Amazon put the pond in the coffin by cutting prices on toys during the 2017 Christmas shopping season. Toys "R" us couldn"t enhance those prices, the agency said in the filing.

The when highly rewarding company finished up carrying a vast debt load.

In the big picture, though, Kodali said the toy industry has actually been struggling for years.

"Children spend much more time ~ above digital devices and also using streaming media an ext than ever," she said. Except for a few brands favor Lego, Kodali said, the toy room is a tough an are to it is in in.

"Toys "R" us never successfully reinvented itself" to offer the interests of youngsters today, Kodali said.

When playthings "R" united state closed that is U.S. Stores, Walmart, together with Target, Amazon, Party City and also other retailers, conveniently expanded their toy assortments and also marketing, follow to market trade group The Toy association Inc.

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Dennis stated he hasn"t seen any kind of data quantifying the affect of toys "R" united state closing, yet "clearly all that company had to walk somewhere."

"Given Walmart, Target and Amazon"s big commitment come those categories, they had to gain relative share" that the toy market, Dennis said.