RETAIL SPOTLIGHT
NEW IN TOWN
The Toy Book chats with Bob Wilke, president, HobbyTown What is the strategy for rolling out RadioShack Express shops within HobbyTown retail locations? Our strategy with RadioShack is to place the initial product assortment in 50 franchise locations across the U.S. (most opened in the past few weeks) and anticipate placement in up to 100 stores by year end. As independently owned franchise units, the longer term depth and breadth of RadioShack products will be determined by each individual franchise owner. We have stores that are opening with small introductory assortments of 425 SKUs or larger introductory assortments with 750 SKUs. HobbyTown stores will have access to the full catalog of RadioShack products and will grow as market demand dictates. We expect the larger RadioShack Express locations within HobbyTown will be merchandised in up to 500 square feet. How does this benefit HobbyTown franchisees, and what are the benefits for RadioShack? The HobbyTown franchisees will be able to service a clientele that closely aligns with our current customer demographic (hobbyists, makers, DIY’ers, etc.). The participating HobbyTown RadioShack Express stores will be listed as authorized RadioShack dealers on the radioshack.com website and benefit from the site traffic of users seeking a local source for these products. As the exclusive retailer in the hobby industry, it will add value to HobbyTown franchise ownership. For RadioShack, the benefit will be the rapid expansion and return of RadioShack products to a large footprint of premier brick and mortar retailers in urban markets across the U.S. The current footprint of RadioShack dealers (about 420) are mostly in rural locations. Explain the turnkey approach for HobbyTown franchisees who are opening RadioShack Express shops. With the relatively small footprint for the initial merchandise selection, most HobbyTown franchise stores will incorporate the RadioShack
planogram in the existing radio control and/ or hobby supplies departments of the store. As market demand increases, stores that are currently at maximum inventory capacity will excise slower selling lines or product categories to create additional shelf space. The HobbyTown and RadioShack merchandising teams are collaborating to define the ideal mix and suitable space necessary to optimize the RadioShack Express in each location.
HobbyTown announced in April that it is expanding the footprint of toys within each of its locations. How is this progressing, and what is your expectation for fourth quarter toy sales at HobbyTown? The strategic plan for expanding the footprint of toys in HobbyTown franchise stores has advanced significantly since April. We have completed the onboarding process to begin distributing Hasbro directly to our franchise stores to complement our already established distribution of other major toy and game brands such as Mattel, Asmodee, Fisher-Price, LEGO, Spin Master, MGA Entertainment, etc. The 2018 HobbyTown National Convention was held last week in Lincoln, Neb., and our tradeshow vendor mix was heavily weighted toward new and established toy company relationships providing our franchisees with a wealth of opportunities to discover new products and sourcing options. We are also pursuing and securing co-op advertising partnerships with our key vendors to execute a Q4 marketing campaign to drive awareness of the HobbyTown brand as a pre-
mier specialty toy retail source. We are bullish on our expectations for Q4 toy sales as our merchandise selection, supply chain, omnichannel shopping, and customer shopping experience delivery are all coming together and aligning for a holiday surge. Are there opportunities for toy manufacturers to expand distribution in HobbyTown stores? Yes, we are continuing to aggressively expand our toy vendor relationships. We consider the best sourcing options for each vendor to best align with the purchasing needs of our franchise network; some relationships are B2B between the manufacturer and our stores, while others are suitable for our internal distribution to franchise stores. Are there opportunities available for additional HobbyTown franchisees to come on board this year? Yes, we typically require a minimum lead time of eight weeks prior to the store opening to accommodate financing, site prep, inventory processing, and fixture fabrication. We also prefer to open franchise stores prior to the Thanksgiving holiday to allow the owner/operator an opportunity to advance along the learning curve prior to the holiday customer and sales surge. What are your plans for 2019 and beyond? We are executing a 2020 vision for our brand to enhance the consistency of our brick and mortar shopping experience across all franchise stores and aligning our online presence (hobbytown.com and social media) to provide customers with a “wow” experience that goes beyond ordinary and beyond fun! The rapid changes in the retail landscape dictate constant innovation to remain relevant to consumers and exceed expectations. We will continue to seek out partnerships with vendors and retailers (such as RadioShack) that align with our brand vision and enhance the HobbyTown shopping experience. »
toybook.com | JULY/AUGUST 2018 | THE TOY BOOK 15