News

The opening of Toys “R” Us in Panama is more than the arrival of another international retailer.

Panama has been selected as the headquarters, logistics base, and operating showcase for a five-year expansion plan that could bring up to 60 Toys “R” Us and Babies “R” Us locations to 27 markets across Latin America and the Caribbean, supported by projected investment of more than $50 million.

The strategy is being led by Cotton Candy International, the Panama-based master franchise operator. Its flagship store will serve both local consumers and prospective regional partners interested in bringing the brand to their own markets. That places Panama at the center of the expansion.

Inventory and distribution will be supported through the Colón Free Zone, allowing the company to coordinate imports, e-commerce and future franchise operations from one regional base. Panama’s logistics infrastructure gives the business room to expand beyond the size of the domestic market.

The operating model is also different from the one associated with the brand’s collapse in the United States. Toys “R” Us is now expanding internationally through regional franchise partners, flexible store formats and e-commercerather than rebuilding a large network of company-owned stores.

The local impact begins with employment. The Panama operation is expected to generate between 70 and 100 direct jobs, along with approximately 30 indirect positions, with further growth possible as new locations and regional operations are added.

The combination of Toys “R” Us and Babies “R” Us broadens the business beyond traditional toy sales. Baby products, gifts, collectibles and licensed merchandise can generate demand throughout the year, while smaller stores and shop-in-shop formats may allow the brand to enter markets that cannot support a large flagship.

The main challenge will come after the opening period. Brand recognition can attract initial traffic, but long-term performance will depend on pricing, inventory, delivery speed and the quality of the in-store experience.

For Panama, the investment reflects a broader trend. International brands increasingly see the country not only as a place to sell, but as a base from which to manage distribution, franchising and growth across the region. Toys “R” Us has opened a store in Panama. More importantly, it has chosen Panama as the starting point for its next phase in Latin America.

5 Things to Know

1. A massive regional expansion is underway. The company is targeting up to 60 locations across 27 markets over five years, backed by a projected investment exceeding $50 million.

2. Panama serves as the strategic hub. The country was chosen for its regional connectivity, the Colón Free Zone, and logistics infrastructure, acting as the regional base to manage distribution and franchising.

3. The launch creates strong local employment. The initial operation is expected to create 70 to 100 direct jobsand around 30 indirect positions.

4. The strategy relies on flexible store formats. Rather than rebuilding massive legacy networks, the plan includes flagship stores, smaller locations, shop-in-shops, and e-commerce.

5. The brand is broadening its product scope. By integrating Babies “R” Us alongside toy sales, the stores will offer baby products, gifts, and collectibles to sustain year-round consumer demand.