Toys"R"Us IS the problem

News hit last Friday, Toys “R” Us has once again left the building.

Under the cover of Covid, the former industry leader recently closed its only two U.S. stores, both relaunches had opened in late 2019 by Tru Kids Inc. - the entity that acquired the brand’s intellectual property during the retail giant’s 2018 bankruptcy liquidation. It should be pointed out that the new entity is made up of many of the same executives steering the ship at the time of the original store's demise.

In a statement from Toys "R" Us: “As a result of Covid, we made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic. Consumer demand in the toy category and for Toys “R” Us remains strong, and we will continue to invest in the channels where the customer wants to experience our brand.”

This is despite the toy industry having experienced a Covid related boost, as expendable income that used to go toward activities and experiences is now often being funneled back in to "stuff" - toys being one of the more rewarding categories for those seeking diversion.

Despite retail sales being flat for the first quarter and fears of catastrophic declines as nationwide stay-at-home orders took effect amid the spread of the COVID-19 pandemic, U.S. toy industry sales grew by 16% according to The NPD Group. (thanks for the info @Toybook!)

Many will say this only helped the online retailers, but Toys"R"Us had online retail the entire time (fulfilled by Target). Also, many of the smaller industry players have managed to survive and THRIVE in this difficult new reality. Perhaps the problem runs deeper?

The above is the heavily promoted image that accompanied the initial Toys"R"Us return announcements. A cold rectangle of a store, with absolutely no resemblance to the stores of our collective childhoods. The only potential bonus is the relatively easier access of the inline mall location.

It is a clear attempt at rebranding for a company who's only remaining value is nostalgia! Why leave all those warm fuzzies in the trash?

Case in point? Just as the reboot stores were closing, a 30 minute video of a Toys"R"Us video in the 90s took the internet by storm:

Adults on the internet collectively squealed as all their childhood favorites paraded by, mint in box!

I could go deeper into this case study on nostalgia + toys, but the short story is the toy store is not dead, and there is still a LARGE 22 Billion dollar market out there. Much of this market is made up of grownups - which very few retailers consider when they launch retail locations.

Toys"R"Us may be gone again, but after an amazingly validating 2020 Kappa Toys is expanding. We promise the bring the nostalgia that others neglect while giving families a safe place to create new toy store memories.

Comment below, we want to know which cities need a Kappa Toys first! See you all at the toy store!