Omnichannel retail giant Macy’s (M) has inked a strategic partnership deal with WHP Global. The partnership paves the way for Toys “R” Us to make a comeback in the U.S. Shares jumped 19.59% to close at $21.61 on August 19.
The two are teaming up to make it easy for Macy’s customers to experience an expansive portfolio of Toys “R” Us products, both online and in brick and mortar stores across the country. Teaming up with Macy’s should allow Toys “R” Us to expand its footprint in the children’s toy segment, the company said.
Markedly, Toys “R” Us will roll out in over 400 Macy’s stores across the country next year. (See Macy’s stock charts on TipRanks)
“Our partnership with Macy’s marks the greatly anticipated return of Toys ‘R’ Us in the U.S.A., and changes the retail landscape by combining two beloved retail brands together for consumers across the nation in a completely innovative way,” said CEO Yehuda Shmidman of WHP Global.
The partnership will allow shoppers to search for their favorite items by age, toy type, and brand. Creative learners will have access to STEM-inspired products, with Macy’s also offering products that highlight inclusivity, learning, and discovery, the company said.
Recently, J.P. Morgan analyst Matthew Boss reiterated a Sell rating on the stock. However, Boss raised the price target to $19 from $17, implying 12.08% downside potential to current levels.
Consensus among analysts is a Hold based on 2 Buys, 2 Holds, and 2 Sells. The average Macy’s price target of $20.20 implies 6.52% downside potential to current levels.
M scores a 5 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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