A couple stories caught my eye. Once is about the collapse of Toys ‘R Us, and the other about what it would actually take to bring manufacturing back to the U.S., if we decided we want to do that.
I don’t see why pop-up urban toy stores, similar to the pop-up Halloween stores that set up shop temporarily in underused retail spaces, couldn’t work. You could have a curated collection of the coolest toys of the year set up in a very entertaining way, let kids actually play with them, and have roving salespeople and interactive displays where people can order the toys to be delivered to their homes, say with free 2-day shipping. You could use whatever existing low-cost retailer you want (Amazon, Walmart, whatever) while recreating some of the holiday magic of F.A.O. Schwartz and small town Main Streets of yesteryear.