The Kroger Co. is the latest retailer to jockey for a slice of holiday toy sales after the demise of Toys R Us Inc.
The grocer said Nov. 2 that it will offer toys from Geoffrey's Toy Box, which manages some brands formerly sold exclusively at Toys R Us, at about 600 of its roughly 2,800 U.S. supermarkets.
Kroger locations with the pop-up stores will be concentrated in the Midwest and South, including Kentucky, Indiana and Georgia — all traditional strongholds for the Cincinnati-based supermarket operator. Oregon, Texas and Washington will also have at least 50 Kroger locations featuring the toys, according to a statement from the company.
Kroger lacks a presence in populous Northeastern states where Toys R Us once had locations, including New York and Massachusetts.
The pop-ups are a prelude to a formal relaunch of Toys R Us planned for next year, Bloomberg reported Nov. 2. Citing unnamed sources, Bloomberg reported that Solus Alternative Asset Management LP and Angelo Gordon Advisors LLC, the hedge funds that own the remnants of the Toys R Us brand, are seeking funding for a reboot that includes physical stores.
Other U.S. retailers, including Target Corp. and Walmart Inc., have bolstered their toy selection going into the first holiday season in recent memory without Toys R Us. The retailer filed for Chapter 11 bankruptcy in September 2017 but eventually agreed to liquidate. It closed its last stores in June.
Struggling areas of the retail industry, including toys and department stores, are likely to get a boost from the strong economy this holiday season, the National Retail Federation said in October.