Toys R Us and Babies R Us seal deal to buy 13 Toy Zone stores in Gauteng

Toys R Us and Babies R Us South Africa has sealed a landmark deal to acquire 13 Toy Zone stores in Gauteng and Durban.

The move will retain jobs, expanding its national footprint to 61 Toys R Us and Babies R Us outlets, and accelerating growth in both the toy and baby goods categories.

The transaction was approved this week by the Competition Commission.

The Toys R Us and Babies R Us brands in South Africa is privately owned by Michmir Investments, which operates locally through Amic Trading under licence from Toys R Us Global.

Dr Phumla Mnganga, the chairperson of Toys R Us South Africa, said, “This acquisition is a milestone for Toys R Us and Babies R Us South Africa, giving us an even stronger platform to grow our share of both the toy and baby goods markets.

Mnganga said by expanding Toys R Us national footprint to 61 stores, the firm was not only securing its leadership position in the sector, but also unlocking new opportunities for families across the country to access the very best in play and parenting products.

Toys R Us and Babies R Us is committed to preserving local employment as ninety-four Toy Zone operational employees will be retained and integrated into the Toys R Us family.

“We understand how important these jobs are for our communities across the country,” Mnganga says. “We are pleased to welcome our colleagues from Toy Zone into our company and look forward to working together to offer South African families an outstanding shopping experience.”

Toys R Us said this acquisition will further enhance its market reach significantly. Through this deal it would strengthen its store footprint and give customers better access to Toys R Us and Babies R Us brands. Mnganga said, “It also presents a considerable value of the sales opportunity especially during the high-demand holiday period.”

For the first time, Toys R Us will be entering high-traffic strip malls, a move that makes its stores even more accessible and convenient for families.

Mnganga said, “It means parents can easily pop in for everyday essentials like nappies and formula, or pick up a last-minute birthday gift, without needing to plan a full day at a large shopping centre. This shift is about meeting families where they are and making the Toys R Us and Babies R Us experience part of their daily lives.”

Mnganga said each Toy Zone store will be converted into a dual Toys R Us and Babies R Us destination.

The timing of this acquisition comes as the South African toy market demonstrates strong momentum.

“We believe this acquisition is a timely investment in our future, retaining Toy Zone’s experienced team ensures continuity of service, while the added scale gives us the ability to better stock the right products, offer compelling promotions, and deliver an exceptional shopping experience both in-store and online,” said Mnganga. “As families gear up for the festive season, Toys R Us and Babies R Us is now more prepared than ever to meet their needs with breadth, value, and service.

The South African toys market was valued at approximately $511 million (R9 billion)  in 2024, and is projected to reach around $893m by 2033, representing a CAGR of 6.4% between 2025 and 2033.

The e‑commerce segment of the South African toys market generated roughly $ 68m in online sales in 2024, with monthly revenues reaching $7m in July 2025 reflecting rapid consumer adoption and healthy month‑on‑month growth..

BUSINESS REPORT