Toys 'R' Us and Macy's are joining forces, reviving the toy retailer at Macy's department stores in 2022

• Macy's is doubling down on toy sales after seeing a successful performance at its off-price stores.
• Macy's will also be powering Toy 'R' Us's online presence ahead of the 2021 holiday season.
• Toys 'R' Us has traded several hands since it declared bankruptcy in 2017.

Macy's has seen an uptick in toy sales during the coronavirus pandemic, and the department store chain is doubling down on the trend by partnering with iconic toy retailer Toys 'R' Us, expanding its footprint in the toy market.

Macy announced Thursday it plans to include in-store Toys 'R' Us shops in over 400 of its locations by next year with access to the toy giant's private brands. Toysrus.com, now powered by Macy's, is currently online with an assortment of toy collections just in time for the 2021 holiday season. The news is especially exciting for nostalgic Millennials, who remember growing up with the toy brand at its peak.

"Our partnership with Macy's marks the greatly anticipated return of Toys"R"Us in the US," said Yehuda Shmidman, chairman & CEO of WHP Global and Toys "R" Us. Macy's partnered with brand management company WHP Global to revive the stores.

During its second quarter earnings call, Macy's revealed it was reviving Toys 'R' Us after seeing a "standout" performance in toy sales at their discounted Macy's Backstage stores.

Macy's expects to quintuple the size of its toy business through this partnership, CEO Jeff Gennette said in the earnings call on Thursday.

"Our toy business grew exponentially for Macy's in the past year," said Nata Dvir, Macy's chief merchandising officer. "Our partnership allows Macy's to significantly expand our footprint in that category."

Toys 'R' Us shuttered in 2017 after failing to refinance its rising debt, with its last two stores closing at the beginning of 2021. In March, WHP Global acquired controlling stakes in Toys 'R' Us parent company Tru Kids Brands, which bought out the toy company in 2019.

The partnership and in-store integration also signals a reinvestment in the brick-and-mortar retail model, even after Macy's itself announced it was closing 45 stores at the beginning of this year. In-store retail sales were especially hit hard during the COVID-19 pandemic, with some retailers transitioning to eCommerce models.