Staples Canada Re-Engineers Retail with Toys"R"Us Shop-in-Shop Deal

RICHMOND HILL, ON – November 03, 2026 — The aisles of Staples Canada are about to look vastly different. In a move that highlights the aggressive evolution of physical retail, the office supply giant announced today that it has secured the exclusive Canadian retail rights for Toys"R"Us Canada and a newly minted sister brand, Parties"R"Us Canada.

The partnership, orchestrated alongside intellectual property owner Next Century Ipco Can ULC, will officially kick off this holiday season. A pilot shop-in-shop location is slated to open on November 14 at the Staples store in Richmond Hill, Ontario, with immediate e-commerce integration on the Staples website. By the end of 2027, the companies plan to roll out dedicated toy and party sections across nearly 300 Staples locations nationwide.

For casual observers, pairing printer toner with action figures might seem disjointed. But for those tracking the mechanics of modern commerce, this is a calculated masterstroke in real estate optimization and brand survival. Staples gains a high-margin foot-traffic engine, while Toys"R"Us secures a nationwide brick-and-mortar footprint without the crushing overhead of traditional big-box leases.

Survival by Diversification: Re-Engineering the Big-Box Model

The traditional office supply sector has been fighting a secular decline for over a decade. The digitization of the workplace, accelerated permanently by the remote work era, has steadily eroded the demand for paper, ink, and traditional desk accessories. To survive, companies like Staples have had to rethink the fundamental purpose of their massive suburban floor plates.

Staples Canada has been at the forefront of this diversification strategy. Over recent years, the Richmond Hill-based company has transformed its nearly 300 stores into multi-service hubs, incorporating tech support, advanced printing services, and even co-working spaces under its Staples Studio banner. The integration of a dedicated toy and party destination is the next logical, albeit bold, step in this evolution.

"As a Canadian company, with close to 300 stores and 11,000 employees serving communities across every province, we're proud to help write the next chapter for a brand that has been part of childhood in Canada for generations," said Jens Cermak, CEO of Staples Canada, in the official announcement. "By bringing Toys'R'Us Canada and Parties'R'Us Canada into our national retail network, we're creating an exciting new destination for Canadian families, with more choice, convenience and engaging experiences in store and online."

By reallocating underperforming square footage to Toys"R"Us, Staples is attempting to engineer a new type of multi-category destination. The goal is clear: attract families and gift-givers who might not otherwise visit an office supply store, and leverage that increased foot traffic to drive cross-category sales. Commercial real estate brokers have long noted that traditional big-box retailers must either shrink their footprint or find highly engaging partners to fill the void. By choosing a recognizable heritage brand over generic white-label goods, Staples is making a premium play for consumer attention.

The Nine Lives of Geoffrey the Giraffe: An Asset-Light Comeback

The corporate history of Toys"R"Us in Canada is a saga of resilience and restructuring. Following the high-profile bankruptcy of its US parent company in 2018, the Canadian operations were acquired by Fairfax Financial Holdings, and later sold to Putman Investments in 2021. Today's announcement reveals that the brand's intellectual property is now managed by Next Century Ipco Can ULC, signaling a shift toward a licensing and partnership model rather than standalone retail operations.

This "asset-light" strategy mirrors the highly successful playbook executed by Toys"R"Us in the United States, where parent company WHP Global partnered with Macy's to open shop-in-shops across hundreds of department stores. That initiative revitalized the toy brand's physical presence and drove significant foot traffic for Macy's, proving that the nostalgia of Geoffrey the Giraffe still holds immense commercial weight when deployed efficiently.

"For decades, Canadian families have made Toys'R'Us their destination for fun, discovery and childhood memories," said Joel Weinshanker, CEO of Next Century. "We're excited to greatly expand the reach of the Toys'R'Us brand through Staples Canada, which brings an extraordinary national network and deep community connections."

Crucially, the Staples deal introduces a brand-new concept: Parties"R"Us Canada. This addition transforms the shop-in-shop from a simple toy aisle into a comprehensive celebration destination, offering balloons, licensed party goods, and seasonal essentials. It is a strategic bundling that captures the lucrative birthday and holiday markets in a single trip.

Canada's Holiday Toy Wars: Challenging the Retail Giants

The timing of this rollout is far from accidental. Launching just weeks before the critical holiday shopping season, Staples is positioning itself as a direct challenger in Canada's fiercely competitive toy market.

Currently, the Canadian toy sector is dominated by massive general merchandisers like Walmart Canada and Canadian Tire, both of which leverage immense buying power and existing foot traffic to drive seasonal toy sales. Additionally, e-commerce behemoth Amazon continues to capture a massive share of the convenience-driven market.

However, the landscape for specialty toy retail has shown signs of vulnerability. Mastermind Toys, a beloved Canadian institution known for educational and curated toys, sought creditor protection late last year before being acquired and restructured. This turbulence suggests that operating standalone specialty toy stores is increasingly difficult in the current economic climate.

Staples is betting that its widespread network of community-level stores will offer a compelling alternative to navigating massive big-box discounters. For busy parents, the convenience of picking up office supplies, a birthday gift, and party balloons in a smaller, easily accessible suburban footprint could be a significant draw.

"The convenience factor cannot be overstated," noted one retail industry analyst familiar with the Canadian market. "Walmart has the volume, but Staples has the proximity. If they can curate the right assortment of high-demand toys and party supplies, they can siphon off a meaningful portion of the impulse and last-minute gift market."

The integration of staples.ca is equally critical. While the physical shop-in-shops will drive immediate local traffic, the digital storefront must compete with established online toy retailers. The ability to offer buy-online-pickup-in-store for both a new laptop and a trending action figure provides a unique omnichannel advantage that few competitors can replicate.

The Operational Reality of the Shop-in-Shop

While the strategic rationale is sound, the execution of this partnership will require significant operational gymnastics. Integrating bulky, seasonal inventory into a supply chain optimized for pens and laptops is no small feat.

The pilot location at 45 Red Maple Road in Richmond Hill will serve as the crucial testing ground. Staples will need to determine the optimal square footage reallocation, which in similar retail partnerships ranges anywhere from 1,000 to over 5,000 square feet depending on the store's footprint.

Beyond physical space, the logistical challenges are immense. Staples must adapt its inventory management systems to track volatile seasonal toy trends and manage the lifecycle of party supplies. Store staff, accustomed to selling tech hardware and printing services, will require extensive retraining to merchandise toys, assemble displays, and manage balloon inflation stations for the Parties"R"Us segment.

There is also the question of brand identity. Staples has spent decades cultivating a reputation as a serious hub for professionals and students. Introducing the chaotic, joyful energy of a toy and party store requires careful architectural and acoustic zoning within the store to ensure that a professional browsing for high-end office furniture is not overwhelmed by the sounds of a make-and-take toy event.

Furthermore, the supply chain integration will test both Staples and Next Century. Ensuring that nearly 300 stores remain stocked with the right mix of exclusive products and everyday play essentials requires a level of coordination that extends far beyond a simple licensing agreement.

The success of this venture will ultimately hinge on the in-store experience. If Staples can seamlessly integrate the vibrant, experiential energy of Toys"R"Us into its stores without alienating its core business clientele, it will have engineered a masterclass in retail adaptation. As the rollout progresses through 2027, the industry will be watching closely to see if this unlikely alliance can redefine the Canadian retail landscape.