The Macy's department store chain has decided to partner with the owner of Toys "R" Us to bring an assortment of children's toys, games and other gadgets to more than its 400 stores starting in 2022, announced Thursday. both groups.
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“Our toy business has grown exponentially over the past year,”
Nata Dvir, Macy's sales manager, said in the statement.
“Our partnership will allow Macy's to significantly expand its presence in this category,”
she added. Macy's, which faces stiff competition, especially from online giant Amazon, hopes shoppers visiting its stores looking for toys will be tempted to purchase other items such as clothing or makeup. .
Toy "R" Us, recognizable by its colorful mascot Geoffrey the Giraffe, has also had some tough times and is struggling to survive as a stand-alone chain. After filing for bankruptcy in 2017 and closing more than 700 stores across the United States, Toys “R” Us was acquired in the spring by WHP Global.
Macy's had also closed underperforming stores in a retail segment that has shrunk in recent years. Department stores have tried to compete by unveiling more mini-stores for cosmetics and other products. Macy's considers toys a good
“entry category”
for Millennial consumers who grew up with the toy brand and are now parents.
“We believe we can quintuple the size of the
toy
business”
, said Jeffrey Gennette, general manager of Macy's on a conference call with analysts. And Toys "R" Us will be well represented at Macy's annual Thanksgiving Parade in New York in November.
345 million turnover for Macy's
The announcement comes on the day of Macy's second quarter earnings release.
The group posted a net profit of $ 345 million, a quick turnaround from the loss of $ 431 million recorded in the same period last year.
The rebound came thanks to the 59% jump in sales to $ 5.6 billion.
Macy's has raised its sales and profit forecast for 2021, indicating increased footfall to its stores as well as its ability to attract around five million new customers.
This information was greeted on Wall Street where the title Macy's jumped 22.3% to 22.08 dollars in the afternoon trading.