CHATTING WITH THE INDUSTRY
Chatting Industry With
the
MARK CARSON
PRESIDENT AND CO-FOUNDER, FAT BRAIN TOYS
The Toy Book spoke with specialty retailers and manufacturers about the latest trends, industry happenings, and how business strategies are evolving in the specialty toy market. How has the specialty retail landscape evolved over the past year since the loss of Toys “R” Us?
DOUG CASS
OWNER AND HEAD OF SALES, KAHOOTZ TOYS
ANITA DEMETROPOULOS OWNER, ISLAND TREASURE TOYS
RICHARD P. DERR
OWNER, LEARNING EXPRESS TOYS LAKE ZURICH, IL
Carson: From what we’ve gathered, it hasn’t had as much short-term impact on specialty retail as some may have originally thought. It did open up some opportunities to capture a few new customers who were looking for that true toy store experience, but for certain, the majority of that $7 billion in Toys “R” Us annual revenue did not end up in specialty retail. Cass: I don’t believe the landscape has changed that much. The stores that deliver on [their] promise to consumers to deliver high-quality service continue to perform well and grow their business. We certainly have seen a lot more activity from larger companies that leaned on Toys “R” Us too much now paying attention to smaller retailers. Demetropoulos: More and more people are finding their way to their local toy stores. I find many of them are surprised at how much we have to offer. Derr: It has been choppy and uneven. In fact, sales have not been strong when you think they should be, and vice versa. The old adage is true — when toys are in the news, it is good for the industry (good or bad). The sheer amount of discussion over the demise of Toys “R” Us propelled toys in the news last year, which ultimately was good for remaining toy retailers. Holmstrom: The loss of Toys ”R” Us affected everyone within the toy and game industry, but it also opened up
32 THE TOY BOOK | MAY/JUNE 2019 | toybook.com
possibilities within the specialty retail landscape. The specialty shops carry products from brands that couldn’t compete at mass chains, which exposes the customer to the unique toys and games and keeps them coming back for more. Quartin: In 2018, I saw many retailers making fast and aggressive moves to pick up market share lost by Toys “R” Us. Like a painter using spray paint, it was important to act quickly and worry less about small mistakes. In 2019, retailers are looking back on what worked and what didn’t, and using fine brush strokes to refine and modify strategies. We should expect to see more highly curated assortments, stronger inventory controls, and aggressive advertising budgets in 2019. Saldanha: On the consumer side, many families who were used to visiting Toys “R” Us are looking for new toy stores to call their own, resulting in new customer acquisition for independent toy retailers. Woldenberg: Specialty retailers have become more important as a way of introducing our products to families. The shopping experience at specialty is particularly beneficial for brands, such as ours, that focus on education. Specialty can shine a light on features that make our products better and different. What business strategies are working now that wouldn’t have worked in the past? Derr: Manufacturers and retailers are using social media to reach consumers in an all-new way, directed to kids (YouTube)