Toys R Us, Babies R Us acquires Toy Zone
The transaction, approved by the Competition Commission, positions Toys R Us as the clear market leader ahead of the 2025 festive season.
The Toys R Us and Babies R Us brands in South Africa is privately owned by Michmir Investments (Pty) Ltd, which operates locally through Amic Trading (Pty) Ltd under licence from Toys R Us Global.
“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,” according to Dr Phumla Mnganga, chairperson of Toys R Us South Africa.
“By expanding our national footprint to 61 stores, we are not only securing our 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.”
She explains that Toys R Us and Babies R Us is committed to preserving local employment, as 94 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,” she 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.”
“At the heart of everything we do is bringing joy to families,” she adds. “This acquisition gives us even more opportunities to create magical moments for children and parents across South Africa whether it’s a first toy, a baby’s nursery, or a birthday surprise.”
Strategic growth and market opportunity
“This acquisition will further enhance our market reach significantly. Through this deal we will strengthen our store footprint and give customers better access to our Toys R Us and Babies R Us brands,” Mnganga explains.
“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 our stores even more accessible and convenient for families,” she adds.
“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.”
She notes that by expanding the network and combined operational capabilities will allow us to serve customers more efficiently and innovatively.
“Each Toy Zone store will be converted into a dual Toys R Us and Babies R Us destination, which is a tremendous opportunity for us,” adds Mnganga.
“Expanding Babies R Us into these new locations allows us to better serve young families with everything from nursery essentials to toys that grow with their children. This integration not only strengthens our footprint but also cements our position as the go-to retailer for families at every stage of childhood.”
Growth in South Africa’s toy industry
The timing of this acquisition comes as the South African toy market demonstrates strong momentum:
- The South African toys market was valued at approximately $511m 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.
- According to analysts, South Africa accounted for about 41.9% of the entire toys and games market in Africa in 2025, highlighting its leading regional position.
- The 0 to 8-year-old demographic remains dominant, with infant/toddler and doll segments projected to represent over 30 % of total market value through 2027.
These figures underscore a vibrant and expanding market driven by both in-store and online consumer demand, especially for educational and developmental toys.
“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.”