State of the
Industry SIMHA KUMAR
PAUL SOLOMON
How do you engage consumers in store to drive toy sales? As a retailer that has been selling toys for more than 50 years, we know driving toy sales starts with being well-positioned to deliver on what’s trending, but equally as important are engaging with our members in-store and delivering an unparalleled retail experience. To capture this excitement, Kmart launched a new brand identity this year, leveraging our iconic heritage and making shopping fun again by bringing back member favorites such as Bluelight Specials, Freebie Saturdays, and other instore events to create an overall enhanced experience at Kmart.
What were your top-selling toys/toy categories of 2015? Any surprises? Shopkins was definitely our top-selling brand in 2015. We expected Shopkins to continue to grow in popularity; however, we were delighted to see that the brand dominated so many major markets around the world, led strongly by the U.S. More children are collecting, trading, and displaying than ever before. Our strong licensed merchandise program is also thriving, giving kids ways to wear, decorate, and accessorize their life. This year, Shopkins has evolved from a brand to a lifestyle. We’ve also seen great success with Little Live Pets. The Little Live Pets Birds continue to be one of our strongest sellers. The brand expanded this past year to include Mice and Turtles, which both proved to be favorites among kids as well.
President, Children’s Entertainment, Kmart
Did the popularity of Star Wars toys drive additional, non-Star Wars toy sales in the fourth quarter? Do you plan to dedicate as much space to Star Wars in 2016? Enthusiasm for the brand was high when we introduced products from the new movie into our existing robust line of Star Wars toys on Force Friday in September. Interest grew throughout the season as the frenzy reached a fever pitch with the movie’s premiere coinciding with the peak of holiday shopping. By positioning Kmart as a destination for Star Wars toys and offering exclusives such as the limited-edition Kylo Ren (Starkiller Base) figure and A-Wing Micro Machines, we drove customers both online and in-store to capture their piece of our cross-category assortment of Star Wars toys and beyond. We’re ready for the Star Wars interest to continue, and we’re excited to tap into proven pop culture powerhouses such as highly anticipated 2016 movie sequels, including Teenage Mutant Ninja Turtles, Captain America, and Finding Dory, to inform our inventory selection and offer on-trend toys for all ages and stages. Record numbers of shoppers used mobile devices to make holiday purchases in 2015. How will you address the needs of mobile shoppers this year? A recent survey commissioned by the National Retail Federation (NRF) found that 22 percent of shoppers planned to purchase on mobile during the season, the highest since NRF began asking the question in 2011, so obviously mobile continues to play an important role in the shopping mix. To kick off the busiest shopping season of the year, Kmart refreshed its mobile app this past November with easy-to-use features designed to help shoppers cross everything off their shopping lists. New features and benefits include Bluelight Special Alerts, layaway options, and exclusive offers to make it easier than ever for our members to shop, earn points, and get the best deals online, in-store, and through their smartphones.
66 THE TOY BOOK | FEBRUARY 2016 | TOYBOOK.COM
Co-CEO, Moose Toys
How have consumer expectations changed over the past few years? Over the past few years, as technology advances, children have grown to expect a brand to be immersive and interactive. Children enjoy experiencing their favorite brands through a variety of mediums. For example, Moose has expanded Shopkins to have a strong social presence, including Facebook, Twitter, Instagram, and Snapchat. We also introduced an app with which kids can play games and interact with their favorite characters in Shopville. With almost 3 million downloads in four months, the app is a great example of how technology helps immerse a child in a brand. Finally, kids can experience Shopkins on YouTube, watching the brand’s webisodes or their favorite YouTube personalities hunt for rare characters. This all ties back to consumers’ desire for immediate content and the importance of a brand to deliver engaging and interactive experiences. We’re beginning to see more innovation and risk-taking in new product introductions than in recent years. Will you introduce any new products or lines that take play to a new level? The Little Live Pets family of electronic pets continues to grow. With its huge success in 2015, Moose is excited to push the boundaries and explore the “live” part of the brand this year. Implementing all new advanced technology, Moose is launching its most lifelike pet yet—the Little Live Pets Puppy. Children of all ages will fall in love with the newest pet in the Little Live Pets family that takes lifelike play to the next level.