The Rise & Fall of Toys “R” Us In The United States

The map above shows the rise and fall of Toys “R” Us In The United States.

From V1 Analytics who made the video:

At their peak, Toys “R” Us had over 1,000 locations in the United States which included Kids R Us, Babies R Us and Imaginarium stores. Today they have only two locations left which both operate under the Tru Kids brand.

Sources

A complete list of United States store addresses along with their lease information, retail square footage, phone numbers, and store ID numbers was made available at the time of their bankruptcy.

A .pdf of the complete 139 page bankruptcy filing is available here.

See Exhibit A for the list of stores.

The addresses of the first 182 store locations was originally posted on the Toys R Us website. It is now only available through the Wayback machine.

The second and final phase began at the end of March 2018 and involved liquidating all remaining stores. The addresses of all remaining store locations and details of the company’s liquidation was made available through the bankruptcy court filings, linked above.

Stores were closed permanently as soon as they had finished liquidating their inventory. The order of the closures was based on each store’s gross square footage.

It was assumed that the larger locations would have taken longer to liquidate. The last of the stores were officially closed to customers on June 29 2018.

The per-state store numbers were obtained from archive copies of Toys R Us Inc’s annual 10-K filings with the SEC from 1996 to 2017. The numbers before 1996 were collected from various business news articles that covered the history of the company.

There was a high volume of relevant business news articles in 2017 and 2018 during the Toys R Us bankruptcy.

You missed Wyoming?

One Toys R Us location supposedly existed in Cheyenne, WY at the Frontier Mall at 1400 Dell Range Blvd.

However I can’t confirm that this location was ever opened.

According to this post: a user reported in 2014, that it didn’t exist.

There was no mention of Toys R Us on the Frontier Mall online directory on the Wayback machine.

There were no Wyoming locations mentioned in any of the company reports, therefore Toys R Us Wyoming was deliberately excluded from the data.

Why Toys “R” Us Became Popular

Toys “R” Us was founded by Charles Lazarus in 1948, originally as a children’s furniture store, later expanding into toys.

It became popular for several key reasons:

1. Huge Variety: It pioneered the concept of a “category killer” by offering a massive selection of toys, unmatched by department stores or smaller toy stores.
2. Aggressive Pricing: Its large scale allowed it to offer competitive pricing, attracting budget-conscious families.
3. Experiential Shopping: The store created memorable experiences for children through interactive displays and appealing layouts, making shopping enjoyable for both kids and parents.
4. Strong Branding and Marketing: The iconic mascot, Geoffrey the Giraffe, and memorable jingles (“I don’t wanna grow up, I’m a Toys ‘R’ Us kid”) made the brand recognizable and beloved.

Why Toys “R” Us Failed

The decline and ultimate failure of Toys “R” Us resulted from several interconnected factors:

1. High Debt Levels: A leveraged buyout by private equity firms in 2005 loaded the company with massive debt, reducing its flexibility to innovate or respond to market changes.
2. Rise of E-commerce: Competitors like Amazon offered convenient online shopping, often at lower prices, undermining Toys “R” Us’s traditional retail model.
3. Poor Digital Strategy: Toys “R” Us failed to effectively adapt to the online marketplace, lagging behind in establishing a robust e-commerce presence.
4. Shifting Consumer Preferences: Children increasingly preferred digital entertainment, video games, and electronics, reducing traditional toy sales.
5. Decline in Store Experience: Financial constraints led to deteriorating store conditions and outdated inventory management, diminishing the consumer experience that once differentiated Toys “R” Us from competitors.

Timeline of Toys “R” Us Rise and Fall

Year	Event
1948	Charles Lazarus opens “Children’s Bargain Town,” initially selling baby furniture.
1957	First store named “Toys ‘R’ Us” opens in Rockville, Maryland.
1960s–1970s	Rapid expansion nationally, becoming the dominant toy retailer.
1980s–1990s	Peak of success: Toys “R” Us is synonymous with toy retailing, iconic commercials popularize the brand.
1998	Walmart overtakes Toys “R” Us as the largest toy seller in the U.S.
2000	Toys “R” Us struggles with growing competition from discount retailers and online shopping.
2005	Purchased in a leveraged buyout by Bain Capital, KKR, and Vornado Realty Trust, incurring significant debt.
2017	Files for Chapter 11 bankruptcy protection in the U.S.
2018	Announces liquidation of all U.S. stores, closing over 800 locations.
2019–2020	Attempts revival through smaller-scale store formats and partnerships.
2021–2022	Toys “R” Us returns as pop-ups within Macy’s stores, attempting another revival.

Current Status:

Toys “R” Us continues to exist through smaller pop-up locations and partnerships, notably within Macy’s, aiming to leverage nostalgia and adapt to the evolving retail landscape.

What do you remember about  Toys “R” Us?