Target to Operate Toys ‘R’ Us Online Business
Target is looking to win an even bigger share of holiday season toy sales this year.
To do that, the retailer, which last year won a ton of market share in the wake of the Toys ‘R’ Us bankruptcy, said on Tuesday it had landed a deal with Tru Kids Brands to relaunch Toysrus.com in a move that will send toy shoppers its way.
The toysrus.com site—launched Tuesday just as the holiday season is starting to appear on the horizon—showcases products with reviews and videos. But Target will supply the e-commerce muscle by re-directing shoppers to its own site via a “buy now at Target.com” button to complete the purchase there. The items are all part of Target’s inventory and the chain will handle fulfillment and delivery.
The move aims to build on the successful holiday season—which accounts for some 40% of annual holiday season sales—that Target enjoyed last year when it doubled down on its efforts to capitalize on the Toys ‘R’ Us bankruptcy in September 2017. Toys ‘R’ Us liquidated its stores entirely the following spring. Tru Kids Brands, created in January, owns the Toys ‘R’ Us brand.
“By applying our capabilities in a new way with Toys ‘R’ Us, we can serve even more toy shoppers, drive new growth, and build on our toy leadership,” Nikhil Nayar, Target’s senior vice president of merchandising, said in a press release.
Heading into the 2018 holiday season, Target added 250,000 square foot of space across allocated to toys, spread across 500 stores. The category, where it competes hard with Walmart and Amazon, was a strong performer, fueling Target’s 5.7% increase in comparable sales for the holiday season last year.
In August, Target announced a new partnership with Disney to open some shops within its stores. The focus on toys is key because it attracts the young parents so crucial to renewing Target’s customer base.
In addition to providing the muscle for the Toys ‘R’ Us site, Target.com will handle the digital sales for the first two new Toys ‘R’ Us stores that are opening next month as part of the comeback attempt by the toy retailer.
The companies did not disclose the financial terms of the agreement.