Toys"R"Us Announces January Clearance Plans

After filing for bankruptcy in 2017 and shuttering every U.S. store by 2018, Toys “R” Us seemed done. The brand became a cautionary tale about retail debt and Amazon’s dominance. But WHP Global bought a controlling stake in 2021 and started experimenting—Macy’s pop-ups, airport kiosks, cruise ship stores. Nothing stuck quite like the old standalone format.

Now they’re trying something different: a hybrid model with permanent stores in premium outlets and temporary holiday shops that’ll operate through the season. The permanent locations are staying put. The 20 seasonal shops across 16 states? Those are closing after the holidays, likely in late January or early February 2026.

And that’s where it gets interesting for resellers.

When Toys “R” Us liquidated in 2018, resellers who knew the playbook cleaned up. The key was patience: early liquidation discounts started weak at 10 to 30 percent off –– barely worth the trip. But in those final two to three weeks before stores closed permanently, discounts hit 50 to 70 percent off everything.

LEGO sets were the big winners. Star Wars sets that retailed for $180 were selling for $50 or less in the final days. Collectibles moved fast too. The trick was showing up early in the liquidation period to scout inventory, then hitting hard when discounts maxed out right before the doors locked forever.

Things are different this time, because we’re not talking about a full liquidation. These are seasonal shops that ordered inventory specifically for the holiday rush. They might clearance differently than a company going out of business entirely.

If these seasonal stores follow typical retail clearance patterns, here’s what to watch for. Most seasonal retailers like Spirit Halloween or temporary pop-ups start discounting hard in the final two weeks of operation to avoid shipping unsold inventory back to warehouses.

For Toys “R” Us holiday shops, that probably means late January into early February 2026. Right after the holidays when returns spike and parents stop buying toys for a few months.

The question is what’ll be left. Holiday-specific items will be cleared first and hardest (think advent calendars, gift sets, seasonal exclusives). LEGO sets, especially larger Star Wars and Ideas sets, should see meaningful discounts. Electronics and video games might get marked down if they overstocked.

LEGO is still the proven flip. Sets appreciate 11 percent annually on average, but certain themes crush that number. Star Wars LEGO consistently commands 50 percent or higher premiums on the secondary market. Ideas sets average 64 percent resale profit. Even mid-tier sets in the 1,200 to 6,000 piece range yield about 12 percent.

At 50 to 70 percent off retail, you’re looking at serious margins. A $200 LEGO set marked down to $70 that resells for $250 nets you roughly $155 after eBay’s 13 percent fees. Not bad for showing up at the right time.

Funko Pops might be tempting, but be careful. The collectibles market is struggling in 2025 with oversupply issues and Funko itself reporting a 22 percent sales decline in Q2. This comes shortly after PSA’s announcement they will no longer be grading standard Funkos.

Video games and consoles could work if they discount hardware, but Toys “R” Us historically priced electronics close to or above competitors. Check prices against Amazon and Walmart before assuming clearance means profit.

Here’s your roadmap. Right now, these seasonal stores are freshly stocked and priced at full retail. Don’t buy anything yet unless you’re holiday shopping for yourself. Through November and December, they’ll be busy selling at full price.

Watch for the shift in early January. Once holiday sales drop off, clearance signs start appearing. The first markdowns will probably be weak—10 to 30 percent off—and you should keep waiting. You’re looking for the announcement that stores are closing, which triggers the final clearance push.

That’s when you strike. Two to three weeks before the announced closing date, discounts should hit 50 percent or more. Go early in the day for best selection, focus on proven categories like LEGO, and be ready to move fast.

Let’s be honest about the risks here. These aren’t bankrupt stores liquidating everything. They’re seasonal shops that might ship unsold inventory back to distribution centers instead of discounting heavily. The parent company has been more disciplined about protecting brand value since the comeback, which could mean weaker clearances than 2018.

Also, we don’t actually know when these stores will close yet. They might extend through Valentine’s Day or Easter if sales are strong. Or they might clearance earlier than expected if foot traffic dies in January.

The 2018 liquidation taught us that early clearance sales usually disappoint. Toys “R” Us was notorious for high regular prices, so 30 percent off often just brought items down to normal retail. The real deals only came in the final days when liquidators needed to empty buildings.

These seasonal shops operate through partnerships with Go! Retail Group, not liquidators, so clearance patterns might differ completely.

Mark your calendar for late January 2026 and find the Toys “R” Us seasonal location nearest you. When clearance signs go up, wait for deeper discounts before buying. Focus on LEGO sets, especially Star Wars and larger builds. Skip common Funko Pops and verify electronics prices before assuming deals.

This isn’t a guaranteed profit play, but if these stores clearance like most seasonal retailers do, there’s solid money in showing up at the right time with the right strategy. Just remember—patience wins. The best deals always come in those final desperate weeks before the doors close.