Babies”R”Us (Babies) will enter the Brazilian market for the first time through parent WHP Global’s licensing agreement with Ragabesh & Co.
WHP, which also owns Anne Klein and Joseph Abboud, acquired a controlling stake in Toys”R”Us (Toys) in March last year. Other shareholders include Solus Alternative Asset Management and private equity firm Ares Management Corp. The transaction included ownership of Babies, Geoffrey the Giraffe and over 20 established consumer toy and baby brands. Both Toys and Babies are managed by WHP under the Toys umbrella and generate over $2 billion in global retail sales annually through nearly 900 branded stores and e-commerce sites across over 20 countries through digital sites, standalone store sand side-by-side Toys branded locations.
WHP has been working to expand the Toys and Babies presence in the retail market. In August, it signed a deal to revive the nostalgic Toys brand inside Macy’s stores. The move helped to “quintuple” the retailer’s merchandise category and give millennial customers a reason to shop. Macy’s is planning a full rollout into 400 stores this year.
Brazil’s first Babies store is on track to open this year, with additional stores planned for 2023. The licensing agreement eyes 20 freestanding locations in the South American nation’s growing consumer market.
“This expansion is part of our overall strategy to develop both the Babies”R”Us and Toys”R”Us businesses in existing and new high growth markets such as Latin America,” Yehuda Shmidman, chairman and CEO of WHP and Toys”R”Us, said. “We are thrilled to partner with Ragabesh to bring this beloved family brand to Brazil for the very first time—making it even more accessible to our loyal global customers.”
“There is a massive opportunity for a trusted brand like Babies”R”Us to serve the growing population of millennial parents in the largest country in Latin America,” Ragabesh CEO Paulo Turquiai added. “We look forward to working with the WHP Global team and leveraging our vast network of suppliers to bring the first Babies”R” Us retail stores to Brazil.”