Macy’s bet that adding a known retail brand like Toys R Us would jump-start its re-entry into the toy business. The bet appears to be paying off. Macy’s had decided to move from its initial experimental approach to Toys R Us to a full embrace. The company has announced that it will have Toys R Us departments in all stores.
But can Macy’s generate $1 Billion in toy sales? Company Charimand and CEO, Jeff Gennette thinks so. Here is his comment during the company’s earnings call on August 23, 2022. He stated:
We recently announced that by October 15th, we will expand our exclusive Toys R US partnership to include every Macy’s location, just in time for the holiday and gifting season. We’re encouraged by the customer response in the current store locations, and we’re seeing an improved sales trend in our Kids’ business, which typically sits next to Toys R US stores-within-store. Toys is a huge opportunity for us with a fair share of market opportunity of $1 billion in annual sales.“Macy’s (M) Q2 2022 Earnings Call Transcript,” Motley fool
Mr Gennette continued with this caveat later in his remarks:
That’s not to suggest we’re going to get to $1 billion at the end of 2022, but that’s currently what we’re really pushing for.“Macy’s (M) Q2 2022 Earnings Call Transcript,” Motley fool
All of us wish Macy’s the best of luck. The U.S. toy industry desperately needs another major retail player. Can they do $1 billion? With their store count and customer base, I would say, “maybe not this year but soon.”