Independent toy shops ready to fill void from Toys ‘R’ Us Canada closures

Shoppers pass a permanently closed Toys 'R' Us store in Toronto, on Wednesday, Feb. 4, 2026. THE CANADIAN PRESS/Sammy Kogan

TORONTO -- For tots, teens and anyone in between, Cowtown Kids Toys & Candy is a dream.

The Maple Creek, Sask., shop spanning four buildings is jammed with more than 30,000 toys ranging from classic books and puzzles to trendy plushies, trucks and other curios.

Owner Bob Siemens says the vast array of products is proof his business -- like many other independent shops -- is ready to fill the void created by Toys “R” Us Canada closures.

“Even if it looks like the toy industry is suffering, there’s still a vibrancy in the independents that have been there and have stood the test of time. They’re going to be eager to meet the folks still looking for toy shops,” Siemens said mere hours before Toys “R” Us Canada announced it had filed for creditor protection Tuesday.

The filing was another admission that the toy store chain, which has been in Canada since 1984, is struggling. It shuttered 53 of its stores in the last two years and owes millions to suppliers and landlords who are suing the retailer owned by Ancaster, Ont.-based Putman Investments.

While the company hopes a restructuring can keep it alive, it’s warned some of its remaining 22 stores may shutdown as part of the process.

Further closures would put 654 jobs at risk but also leave some communities without the famed big-box toy store many grew up with.

Siemens takes no pleasure in the situation but admits it has benefits.

“It’s not like I read the news of a competitor shrinking with happiness ... but it’s a great opportunity for folks to get out and support their independent toy store,” he said.

Ti-Anna Wang agrees. She sees recent Toys “R” Us Canada closures as a chance for her Toronto shop Silly Goose Kids to attract new customers, especially in the winter months, when toy sales drag as people return to saving after the holidays.

“I hope there’s going to be a little bit of a boost for smaller retailers,” she said Wednesday.

Any increases would be welcome because mom and pop shops have squared off with Toys “R” Us Canada for decades but often found the chain too difficult to compete with because its high number of stores netted it bigger sales and thus, better prices from suppliers.

For example, Toys “R” Us Canada made pricing on products from board games giant Hasbro or Barbie-maker Mattel “incredibly competitive,” Siemens said. He turned to farm play sets and craft and model kits to try to “strike a difference.”

Silly Goose Kids also double downed on arts and crafts as well as educational toys like science kits and offerings from small, Canadian brands to stand out from Toys “R” Us Canada.

Customers have come to appreciate the patriotism and careful curation, Wang said.

“Toys “R” Us is such a big store and I personally found it sometimes overwhelming because there’s so much to choose from and look at,” she said.

“A lot of times, when you’re shopping for gifts, it’s actually nice to have a slimmed-down selection.”

The more intentional approach is often a “winning strategy” these days, but small business owners can’t count on it to convert all customers, said Tamara Szames, a longtime retail strategist and founder of Arc + Axis Consulting.

That’s because history has shown that when a large retailer closes not everyone gravitates to the closest competitor, she said. Some head online to e-commerce websites like Amazon, which have become major competitors in the toy market.

Others purchase things months before they planned from closing stores and then don’t have much more immediate need, Szames said.

This report by The Canadian Press was first published Feb. 4, 2026.

Tara Deschamps, The Canadian Press