The absence of Toys
‘R’ Us headed into the holiday season has created a scramble in two ways:
one, to grab a larger share of the toy market, and another for additional
physical space. Amazon, Walmart, Target, BJ’s
Wholesale Club and Michaels
all have expanded their toy offerings ahead of the season, and old favorite FAO Schwarz is reopening its flagship New York City store in
November.
But retail giants aren’t the only companies hot on the trail
for toy sales and added space: Party
City is piloting 50 Toy City pop-up stores located
alongside its Halloween City stores.
The now-abandoned Toys ‘R’ Us locations leave room for more retailers to go the
Party City route and potentially test new ideas in the short term, but financial
success isn’t guaranteed —especially with larger retailers competing hard for
the holiday dollar.
The RTP team
discusses whether these investments are worth it for retailers as they try to
gain quick traffic and exposure, and whether these decisions have a chance to
impact store performance across the board.
Debbie Hauss,
Editor-in-Chief: With the 20,000-square-foot to 50,000-squarefoot spaces
multiplied by approximately 800 stores, Toys ‘R’ Us is leaving the
business world a lot of real estate to consider. To start, it’s a great
one-time idea for Halloween or Holiday pop-up stores to rent the space, but in
the long term, the property owners are going to need more of a commitment. It’s
been reported that retailers including TJ
Maxx, Hobby Lobby and Burlington may grab up some of the
properties. But as retailers like JCPenney
and Sears also struggle to keep
their large-square-foot spaces open, we could be left with a lot of unsightly
empty buildings in our malls and on our retail-packed roadways in the near
future.
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Adam Blair, Executive
Editor: Using the shells of abandoned Toys ‘R’ Us stores
for Halloween and holiday pop-up locations, as Party City and other seasonal retailers are
doing, is an inspired if somewhat ghoulish idea (although that’s appropriate
for the current holiday). Toys ‘R’ Us stores tended to be in good retail
locations — it was a crippling debt load, not bad real estate, that doomed the
chain. Having pop-up stores in high-profile locations could catch the eyes of
potential impulse buyers: even if you don’t have kids of trick-or-treating age
in your family, you might be inspired to buy a few decorations or even throw a
Halloween get-together. For costume consumers, who are likely to have a more
focused purchase intent, Party City is covering its bases by partnering with Amazon. All of this is right in line
with what needs to be retail’s new mantra: go where the shoppers are;
don’t expect them to come to you.
Alicia Esposito,
Content Strategist: I know that change is inevitable in the retail industry.
However, seeing the local Toys ‘R’ Us shutter – the one I visited myself as a child
—was a hard pill to swallow. Imagine my further shock seeing a sign plastered
along the front of the store, exclaiming “COMING SOON! HALLOWEEN CITY AND TOY
CITY,” a mere week or two after the store’s official closing. I was intrigued
by the quick transition and did a web search. Apparently, this was a broader
tactic, implemented largely by Halloween stores, and it likely required a lot
of quiet planning and discussions with property owners long before Toys ‘R’ Us
stores were ready to close. Upon further thought, I realized that the move made
sense, and that having a broader strategy targeting these vacant stores was
wise. After all, these Halloween stores would be targeting these areas anyway,
and property owners would be eager to make a quick buck on the now-empty space.
It remains to be seen whether the move will have a significant impact on sales —
especially with more e-Tailers and omnichannel retailers expanding their
Halloween assortments. However, it’s clear that the move helped draw some media
attention, which is enough to drive people to the stores and see what all the
fuss is about. What I am most interested to see is what will happen to these
spaces once the ghouls are gone and consumers prepare for Santa’s arrival.
Which retailers will end up in Geoffrey the Giraffe’s abandoned house?
Glenn Taylor, Senior
Editor: If companies are considering new stores within these recently
vacated spaces, I would hope that their plans include data gathering and
analysis. Establishing a pop-up, or any other small-format, short-term store, requires
more than simply stocking the shelves and throwing the doors open; data tracking needs to be a priority
above all else. I’m not always the “throw technology at this to solve a
problem” kind of person, but I feel that sensors tracking time spent in certain
areas; learning what specific products make shoppers stop; and even finding out
who they discuss their purchase/experience with, goes a long way toward discovering
more about the consumers in a geographic area. Experimentation needs to be
taken seriously, especially if a retailer plans on expanding into new physical
territories in a more permanent way. Knowing the customer is the key to
actually offering them what they want.
