Toys R Us sets sights on UK expansion

Dive Brief:

WHP Global, parent company of Toys R Us, has entered into a long-term licensing deal with WHSmith to be the exclusive shop-in-shop partner for the toy company in the U.K., according to a Friday press release.
As part of the deal, WHSmith will open 30 new Toys R Us shop in shops in the U.K. this summer. The retailer will announce opening dates and locations in the coming weeks, per the press release.
The decision follows a pilot of Toys R Us shop-in-shops in select WHSmith stores last year.

Dive Insight:

For WHP Global, the deal with WHSmith is part of its efforts to expand Toys R Us across the U.K. retail market.

“We are thrilled to strengthen our relationship with WHSmith and expand the reach of Toys R Us to more locations across the U.K.,” Stanley Silverstein, chief commercial officer at WHP Global, said in a statement. “This aligns perfectly with our overarching strategy to grow the Toys R Us brand in the U.K. through diverse channels, including flagship stores, e-commerce and travel retail, ensuring accessibility and convenience for the next generation of Toys R Us kids.”

As WHP Global works to expand Toys R Us’ presence across the pond, it has also been widening its brick-and-mortar reach in the U.S. In 2022, WHP Global extended its shop-in-shop partnership to all of Macy’s physical stores. Last September, WHP Global partnered with Go Retail Group to open 24 new flagship Toys R Us stores, and it announced plans to launch more stores on cruise ships and in airports. Later that fall, the company opened a flagship Toys R Us at the Mall of America.

Aside from its Toys R Us efforts, WHP Global has been concentrating on its sister brand, Babies R Us. Its parent company teamed up with El Puerto de Liverpool to open Babies R Us locations in Mexico and establish an e-commerce site.

As WHP Global works to grow Babies R Us and Toys R Us, it may gain another subsidiary brand. Express filed for Chapter 11 bankruptcy this month. Though the company said it received $35 million in bankruptcy financing and $49 million in cash from the IRS, the retailer said it planned to sell itself to a group of owners, including WHP Global, Brookfield Properties and Simon Property Group.