The two store-in-a-store announcements which the heels of excellent quarterly results for both retailers.

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A because 2019, and also a graduate that Cal State LA through a B.S. In Finance and also M.A. In Economics. Parkev is an adjunct professor that Finance and also enjoys reading around financial and also economic history. You"ll often discover him writing around stocks in the consumer goods and an innovation sectors.

Key Points

Macy's plans to add Toys R united state store-within-a-stores at 400 the its locations. Target will expand to 160 Disney shops within its stores. monitoring from both companies appears to be properly navigating the pandemic thus far.

Target (NYSE:TGT) and also Macy"s (NYSE:M) each reported solid earnings results in their most recent quarters this month. Monitoring for both companies additionally announced alters that could bring added foot website traffic to their brick-and-mortar stores. 

Macy"s administration said it would certainly be including Toys R us stores within its locations and also on that website, and Target stated it would certainly be broadening its relationship with Walt Disney (NYSE:DIS) and also adding more of that mini-shops within its stores. Let"s look at each decision an ext closely and see if we have the right to determine i m sorry will administer the bigger benefits to the retail host. 


Macy"s is including 400 toys R Us areas inside the stores. Photo source: Getty Images.

Toys R united state will have a presence in Macy"s stores

On Aug. 19, Macy"s announced a partnership v Toys R Us. U.S. Customers will be able to shop for playthings R us brands inside much more than 400 Macy"s locations beginning in 2022 (Macy"s operated 572 shop in 2020) and on Macy"s website immediately. Today, playthings R united state maintains a website available to U.S. Toy shoppers also as almost 900 branded global stores external of the U.S. Overall, the now-private firm says the generates much more than $2 billion in annual sales.

If the still-popular toy brand can lug a brand-new cadre that customers within Macy"s stores, it would be a large help because that the department save operator. Included foot traffic right into Macy"s stores as kids urge your parents to take it them because that a visit might lead to parental buying something from a different part of the store.

Macy"s has been struggling somewhat in current years come get world to involved its brick-and-mortar stores. In the budget year 2020, Macy"s created $25 billion in annual sales native its Macy"s, Bloomingdale"s, and Bluemercury stores. It"s quiet unclear how much an added Toys R Us existence might influence overall earnings, however the retailer might use a revenue rise to help it regulate the transforms going ~ above in the wider industry.


Target is broadening Disney shops to an ext than 160 places by the end of the year. Image source: Getty Images.

More Disney shops coming to a Target near you

On Aug. 23, Target announced it would certainly be an increasing its total variety of Disney shops inside Target shop to much more than 160 areas by the end of this year (up native 53 shops currently). Disney products also have a highlighted visibility on Target"s website. The first 25 Disney shops in Target were opened up in October 2019.

Interestingly, Target operates an ext than 1,900 stores, for this reason the rollout the Disney shops appears to be proceeding somewhat cautiously. One reason for that can be Target"s great sales performance during the pandemic. The agency increased revenue by 19.8% in budget year 2020 to with $93.6 billion.

Since Target is reportedly not hurting for keep foot traffic the method that Macy"s is, it can afford to take a an ext cautious technique to expansion, trial and error for what works best, and also looking because that a more rollout if the likes what it sees.

Investor takeaway 

Both moves are most likely to have a positive impact on store foot traffic and also revenue for your hosts. Playthings R Us and Disney are well-known brands for families with children. Adults can prefer the convenience of virtual shopping, whereas youngsters get excited around visiting a toy store, seeing, touching, and also playing through products before they buy them. 

That gift said, the playthings R united state inclusion in Macy"s stores has actually the potential because that a bigger impact, at least long-term. The an initial of the 400-plus locations won"t open until 2022 and it"s unclear how long the rollout will certainly take. For this reason short-term, Target need to see some influence sooner together the 160 Disney shops will be up and also running through the finish of 2021.

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In both cases, Target"s and Macy"s management deserve to each be commended because that these latest instances of apparently great decisions to assist keep their businesses growing, including during a pandemic. 

This post represents the opinion of the writer, who may disagree v the “official” recommendation position of a Motley premium advisory service. We’re motley! Questioning an investing thesis -- even one the our own -- helps us all think critically about investing and also make decision that help us end up being smarter, happier, and richer.
Parkev Tatevosian owns shares of Macy's and also Walt Disney. The Motley own shares of and also recommends Walt Disney. The Motley has actually a disclosure policy.


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