Yehuda Shmidman, Chairman & CEO of WHP Global, Toys “R” Us, and Babies “R” Us delivers an update on the business in this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable discussion. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!
The Toy Book: With the first official season in the books for Toys “R” Us at Macy’s, what are some of the biggest things you’ve learned?
Yehuda Shmidman: The emotional reaction from families across the U.S. about the return of Toys “R” Us exceeded expectations. Millennials and prior generations — who were already Toys “R” Us kids — are excited that we’re back, and now we’re witnessing the birth of a whole new generation of Toys “R” Us kids making their own memories with Geoffrey the Giraffe inside Toys “R” Us at every single Macy’s across the U.S. as they experience Toys “R” Us in person for the first time in their lives.
The other critical takeaway we learned is that the magic of Macy’s combined with the power of Toys “R” Us is a winning formula beyond our imagination. It’s a 1+1 = 1,000 scenario. We launched ahead of schedule, in a larger way than originally planned, and while doing so, we saw strong key performance indicators — in terms of sales, new customers, and cross-shopping – all proving the success of our thesis.
TB: What were some of the additional big wins for Toys “R” Us at Macy’s in the past year?
YS: We have strong support from a number of major toy vendors — including Mattel, Hasbro, LEGO, Funko, Spin Master, and others — which contributed to our overall strong performance during the holiday season. We also brought back Toys “R” Us collectibles, offered a limited-edition holiday Funko Geoffrey Pop! which sold out quickly, Geoffrey plush, and our owned brands — including Imaginarium, Just Like Home, and Fast Lane. Another highlight was our exclusive launch of VeeFriends plush collectibles from Gary Vaynerchuk. Look for more exclusives this year.
On a macro level, the biggest win of all for us in 2022 is that our total retail footprint for Toys “R” Us surpassed 1,350 stores globally, equating to growth of more than 50% from where we started at the beginning of the year. Toys “R” Us today is vibrant in more than 30 countries with flagships in the U.S., Dubai, Tokyo, Hong Kong, and many other places in the world.
TB: What’s next for Toys “R” Us?
YS: With our U.S. launch now fully active across all Macy’s, our flagship in American Dream, and on ToysRUs.com, we are focused this year on robust comp growth in all our stores and digitally.
In addition, in January we announced the return of Babies “R” Us in the U.S. with a flagship store at American Dream. Just like our strategy for Toys “R” Us, the flagship opening sets the stage for a forthcoming national rollout of Babies “R” Us in the future. Stay tuned for more news to follow on that front.
TB: How does Toy Fair moving from February to September impact your business, and what’s your take on the trade show shift?
YS: We’re excited about the shift for Toys “R” Us as Toy Fair aligns perfectly with our next invitation-only Annual Global Toys “R ”Us Summit, which will be held in New York. It’s a time when we will bring together many of our key partners from around the world to share plans and exchange ideas. We are very excited about the year ahead.
A version of this Q&A was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
