Retail

Kroger Plans To Sell Toys R Us Brands For The Holidays

Kroger Plans to Sell Former Toys R Us Brands

To dive into the toy market for the holidays, Kroger is teaming up with the hedge fund owners of formerly Toys R Us exclusive brands from Geoffrey’s Toy Box. The grocer plans to sell a selection of 35 products in almost 600 brick-and-mortar locations during the holiday season, Chain Store Age reported.

Kroger Senior Vice President of Merchandising Robert Clark said, according to the outlet, “Geoffrey’s Toy Box delivers a unique shopping destination within Kroger stores. We’re excited to offer Geoffrey’s Toy Box this holiday season to provide our customers with the opportunity to purchase a selection of toys once exclusive to Toys R Us.”

At the same time, the Chicago Tribune reported that unnamed sources claim that Angelo Gordon and Solus Alternative Asset Management, the hedge funds that have ownership of the Toys R Us brand, may be planning to bring back the chain with brick-and-mortar stores. However, the funds didn’t provide a comment to the newspaper on the matter.

Toys R Us had over 700 locations in the U.S. as of April, including those under the Babies R Us banner, and it had approximately 1,600 stores globally. According to The Wall Street JournalToys R Us’ liquidation was the largest retail closure since Sports Authority closed nearly 500 stores.

Since its leveraged buyout, Toys R Us had been burdened with over $5 billion in debt. Competition from eCommerce retailers, such as Amazon, and discount stores like Walmart, hasn’t helped the company either.

Earlier this year, CEO David Brandon said that Toys R Us may liquidate its operations in France, Spain, Poland and Australia. In addition, the company hoped to find a buyer for its Canadian business, which it planned to package with 200 stores in the U.S. “We’re putting a for-sale sign on everything,” Brandon told WSJ. “Frankly, all anyone has to do is offer one dollar more.”

——————————

PYMNTS STUDY: THE CROSS-BORDER MERCHANT FRICTION INDEX – JUNE 2020

The PYMNTS Cross-Border Merchant Friction Index analyzes the key friction points experienced by consumers browsing, shopping and paying for purchases on international eCommerce sites. PYMNTS examined the checkout processes of 266 B2B and B2C eCommerce sites across 12 industries and operating from locations across Europe and the United States to provide a comprehensive overview of their checkout offerings.

TRENDING RIGHT NOW