Toys 'R' Us Will Open 120 Stores for Holiday Season
Retailers should watch this expansion as the brand targets adults who drove a 25 percent rise in toy sales.
Updated on Sept. 18, 2026 in Retail
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Toys 'R' Us will open 120 new standalone stores across the United States ahead of the 2026 holiday shopping season. The move brings the brand’s total independent retail footprint to 160 locations as it looks to capitalize on shifting consumer demographics.
Why it matters
The company is responding to a 17 percent increase in U.S. toy sales during the first half of 2026, driven largely by adults aged 18 and over. This segment now accounts for 55 percent of all toy sales, prompting the retailer to rebuild its physical presence post-bankruptcy.
Toys 'R' Us is opening 120 new units, bringing its standalone total to 160 locations. This expansion follows a period where adults accounted for 55 percent of all toy sales in the first half of 2026.
The players
Toys 'R' Us
A toy retail brand currently rebuilding its physical footprint after a 2017 bankruptcy filing.
Go! Retail Group
A retail operator partnering with brands to execute small-format store expansions.
The details
The expansion relies on smaller-format shops ranging from 3,500 to 7,500 square feet, developed in partnership with Go! Retail Group. Many of these new sites, including those at Woodbury Common and the Mall at Short Hills, are operating under one-year leases. This lean footprint follows the brand's 2017 bankruptcy, which forced the closure of its previous 750-store network.
Timeline
2005: Private equity firms completed a $6.6 billion leveraged buyout.
2017: The company filed for bankruptcy and initiated major store closures.
H1 2026: U.S. toy sales increased 17 percent compared to the prior period.
Holiday season 2026: The company expects to open 120 new retail locations.
Market Landscape
This move marks a departure from the contraction that followed the 2017 Toys 'R' Us bankruptcy. The retailer is now testing a smaller-footprint model to capture the growing adult collector market.
Operators should monitor whether the shift toward short-term leases and small-format stores provides a sustainable margin against rising toy demand. Owners in the toy and hobby space must assess if their inventory mix currently aligns with the high-spending adult demographic.
The takeaway
The retailer’s pivot to high-traffic mall locations signals a focus on capturing adult consumer interest during the 2026 holiday season. Businesses should track if this smaller-store model successfully converts the 25 percent growth in adult-purchased toys into sustained physical traffic.
Further reading
For broader trends in physical store footprints, see Retail.
Live Poll
Do you plan to shop at physical toy stores this holiday season?
