Toys "R" Us Will Open Five Shop-in-Shops in NEX
The expansion signals a growing retail strategy for shop-in-shop formats within specialty and military venues.
Updated on Sept. 24, 2026 in Retail
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Five new Toys "R" Us locations will open inside Navy Exchange (NEX) stores on Oct. 17, 2026. This expansion brings the total count of these specialized retail spaces across the NEX network to 13.
Why it matters
The shop-in-shop model is being used to drive localized traffic and boost category performance within larger retail environments. These installations have reportedly contributed to accelerated year-to-date toy category growth at NEX locations.
The retailer will operate 13 shop-in-shops within Navy Exchange stores following the Oct. 17, 2026 expansion. This move follows the initial pilot launch of these stores in 2024.
The players
Toys "R" Us
An international toy retailer that focuses on in-store brand experiences and shop-in-shop retail partnerships.
Navy Exchange Service Command
The agency that manages the retail stores providing goods and services to active-duty military personnel, retirees, and their families.
The details
Toys "R" Us utilizes a shop-in-shop strategy to embed its brand within existing retail footprints, leveraging the captive audience of the Navy Exchange Service Command. These spaces incorporate interactive branding, such as the Geoffrey the Giraffe mascot, to differentiate from standard shelf space. The new locations will span international and domestic markets, including San Diego and Italy.
Timeline
The first Toys "R" Us shops within NEX stores launched in 2024.
The five new shop-in-shops are scheduled to open on Oct. 17, 2026.
Market Landscape
This development follows the broader industry trend of major retailers utilizing shop-in-shop concessions to maximize floor productivity. The strategy allows brands to gain physical presence in high-traffic, specialized environments without the capital cost of standalone stores.
Operators in the retail space should evaluate the performance of shop-in-shop formats as a tool to drive category-specific sales growth. Monitoring the conversion rates of these embedded units compared to traditional standalone retail can provide a benchmark for physical expansion strategy.
The takeaway
The shop-in-shop model demonstrates how legacy brands can revitalize their footprint by embedding into established, high-traffic retail ecosystems. Retailers should analyze if their current inventory performance supports dedicated in-store activations to capture incremental demand.
What happens next
The five new shop-in-shops are confirmed for their scheduled opening on Oct. 17, 2026.
Further reading
For more on the latest trends in physical storefront management, visit the Retail section.
Source note: This article includes information reported by The Toy Book.
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