Toys “R” Us, the iconic U.S. toy and baby products retailer, could open its first store in Costa Rica in 2027 as part of a regional expansion plan led by Cotton Candy International, a Panama-based company that manages the franchise rights for Toys “R” Us and Babies “R” Us in Latin America.

CCI plans to expand the brands across Latin America through a hybrid store format that combines both retailers under one roof. According to the company, the expansion is part of an approximately $18 million growth plan covering the next five years.

Under a corporate campaign called “Geoffrey Is Looking for a Home,” inspired by Geoffrey the Giraffe, the brand’s mascot introduced in 1965, CCI is working to open 60 stores across Latin America. The plan includes a pilot initiative to open 10 stores in Costa Rica.

 

The Costa Rican locations will operate under a franchise model. CCI is coordinating logistics, hiring, construction and store openings with a team of experts in Panama.

According to the company, this approach will help ensure an uninterrupted supply of inventory throughout the region.

The first store in the region opened in Panama in July, with an estimated investment of approximately $400 per square meter.

“We opened in a fairly controversial shopping mall that had limited foot traffic. The challenge was enormous, but we demonstrated the power of the brand,” said Moisés Cohen, CEO of Cotton Candy International.

“Just 90 days after its grand opening, the store far exceeded its sales expectations, validating that an anchor store of this scale can attract a massive customer base of its own,” Cohen added.

CCI expects the expansion to strengthen the brands’ presence across Latin America and help position Panama as a hub for managing international retail operations.

“Our goal is not simply to open stores,” Cohen said. “We want to build a regional model that can grow in an organized, efficient, and sustainable way, demonstrating that Latin America’s retail transformation can also be led from Panama.”

CCI estimates that Costa Rica’s first Toys “R” Us and Babies “R” Us store could open in 2027.

Toys “R” Us operates through more than 1,680 stores and e-commerce channels in 37 countries worldwide.

In 2018, the brand was acquired by WHP Global, a brand management firm that shifted the business to an “asset-light” licensing model. Under this approach, independent retail partners pay to operate physical stores, allowing the iconic brand to generate recurring revenue without directly operating every location.

The company’s brands generate more than $2 billion in annual global retail sales through branded stores and e-commerce websites.

Toys “R” Us joins a growing list of international retailers investing in Costa Rica. Recently, IKEA, the multinational company specializing in the design and sale of ready-to-assemble furniture, household goods and related services, announced plans to open stores in the country.

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What other U.S. retail chain would you like to see open in Costa Rica? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com

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