Does Toys R Us Need to Close its Doors?

In GIG’s humble opinion (IGHO): If I could plan a perfect scenario for the revival of Toys R Us, this would be it:

1. FUN, FUN AND MORE FUN:

? Convert the stores to a more FAO Schwarz environment or even like the store that used to exist in Times Square. So many people flocked to these stores to see their uniqueness. 

? Make it an experience to shop there. Have a big ride like a merry go round for which kids and parents need to buy tickets to ride. The revenue generated from it can support other ideas below.

You may have visited a warehouse club, where someone is offering free samples and demonstrations in front of their product display. Use this model to showcase a new toy and put some of these toys on a “Kid’s Fun Rug” in front of the display so kids can play with it. After a period of time, all used toys can be donated to a children’s charity. This should be indicated on a sign in the play area. People like knowing that the store/company is helping other kids. 

? Have teaching events that are FREE, such as demonstrating the Gravity Maze or the Wow Wee Robot. Let them see how it works and how cool it is. Conduct fun contests (FREE) in which kids have to team up and demonstrate teamwork to build something. Always have plenty of products nearby ready for purchase. Make it an indoor fun space for kids to play. Build a section for items like LEGO’s or MEGA blocks where there is a platform for kids to play with them. 

? Set these ideas up in the back of the store to encourage walk through. Kids will always ask for at least 25 toys before you leave the store. Consider the success of the Disney stores in the malls. They have a theatre in the center playing movies, tables for kids for activities and fun vignettes of products highlighting the latest hot character. As an aunt of 4 year old twins, I can assure you that I end up buying them something before we leave. If the environment is fun, then the purchase is their souvenir. 

2. EXCLUSIVE AND SPECIAL:

? Just offer toys. No need to offer baby products like strollers or car seats. Don’t waste space on furniture, health aids or diapers. Party good supplies can be purchased at party goods stores. Retailers should respect their territory and keep it as specialized as possible. Why compete in these markets at brick and mortar? Party City does not offer ride-ons nor doll carriages. 

? Be a toy destination with exclusive products only available in store. Meeting vendor minimums should not be an issue when buying products with conviction. TRU can offer a variety of other items on their website, but their stores should be special. Offer toys at a value, but do not compete with the likes of Walmart or Target because your items are unique enough to warrant the price and the markup.

? Make it about customer service. Train your associates to know as many details as possible about the toys. Have the vendors supply in store training for new items that come in. They can do it video conference if need be or in person for the higher volume stores. Have more staff on the selling floor. They can be responsible for a specific area but have general knowledge of the whole store. Staff would rotate their areas on a weekly basis to keep up with product knowledge and changes. 

? Create a sales floor planogram that is consistent across all stores. Have the corporate office send each store an actual image/photo of every new section to be set up indicating which skus belong in which spots. This helps the buyers control inventory, gross margin and turnover. If you set up your section with products that would generate an average markup of X and turn it X times a month, then you may have a recipe for success.  Let the EDI models do the rest.

3. E-COMMERCE:

? The website should be set up as a divided home page: One side with a link to TRU exclusive toys…..the other side can offer all the other categories that compete. 

FINALLY.... I do not mean to pontificate or sound like Jerry Maguire's mission statement. Obviously, this is just a wish list of how I would like to see TRU run, if they do get saved, (and I really hope they do!)

To quote a favorite line from a movie: “If you build it, they will come.”