19th December 2019

Toys ‘R’ Us has really changed, for the better

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Toys ‘R’ Us is officially back, but this time it’s for good.


The brand opened its first location, spanning over 6,000 square feet, in Paramus, New Jersey. Their second location, which is also approximately 6,000 feet, recently opened in Houston, Texas.


Last month, we visited and experienced the debut store in Paramus. During our visit, we saw firsthand how the balance of technology and staff is helping to shape the shopper’s journey and helps shoppers find toys easily this holiday season.


As opposed to having toys stacked side-by-side on shelves, the former toy giant has taken the toys off the shelf and is focusing on one thing: experience. Still recognized as a notable chain of toy stores, they revamped their stores into immersive, engaging toy adventures for kids of all ages.


After our visit, we assessed the factors on the back end that enabled them to deliver a great in-store experience. They are the following:


The customer experience has been enhanced significantly
Taking a literal hands-on approach Toys ‘R’ Us has made it priority to maximize visitor’s play time within their stores. From their team of trained “toy pros” to their roster of live events, each of these touch points gives visitors the opportunity to embark on a memorable, engaging sensory experience.


To add to this, toy pros converse with all visitors about their experience, provide one-on-one demonstrations to select toys, and help visitors navigate the store with ease. While it might seem like just good customer service, these small acts enable the staff to build rapport with the parents and engage with children on a deeper-level (i.e., children asked staff members to play video games with them, talked to the staff members about their favorite toys, etc.).

During our experience, we saw the event space/movie theatre, treehouse, reading area, and even had a chance to play in few designated demonstration areas. Alongside us were plenty parents, children, and even a few teenagers that partook in the in-store activities.


Aside from children, the experience has been marketed to Generation Z.
This toy-destination is accessible to all visitors, but Toys ‘R’ Us has overtly marketed their stores as ‘Gen-Z Friendly’. According to the National Retail Federation, Gen Z shoppers already represent 40% of consumers globally and have buying power that ranges from $44b to $600b (this includes their influence on parents’ purchases).


Also, the National Retail Federation reported that 36% of purchases for households are influenced by Gen Zers. More importantly, their influence has a greater impact on retail. Instead of simply being classified into one group, their opinions on products and places to shop are shifting their entire family’s shopping behavior.  Making it harder for retailers to ignore.


Technology has been used to improve the customer journey
Another great thing about the new Toys ‘R’ Us is its use of technology. The Paramus store features self-service kiosks where shoppers can preview and purchase toys that aren’t inside the store. Once ordered, the items are shipped to customers’ homes in as little as one to two business days.


Other than being mindful of their customers’ time, the self-service kiosks makes their in-store journey frictionless and simpler.


Beyond the plastic clouds, Toys R Us utilizes advanced technology to further personalize the customer’s buying experience. As an alternative to stocking stores with not-so-popular items, which eventually end up on the clearance shelf, Toys ‘R’ Us is making use of sensors to review shopper cadence and interaction. They’re then able to use this information to determine decisions regarding product placement and staffing.


This gives the customer an entirely new type of shopping experience and makes their path to purchase simpler and easier.


They’ve embraced strategic partnerships
Instead of being subjected to potential risks re-opening on their own, Tru Kids, the company that owns Toys ‘R’ Us, has partnered up with b8ta to assist them in stocking Toys ‘R’ Us’ shelves, creating software and handing logistics.


b8ta who specializes in RaaS, Retail-as-a-service, has the used its relationships with major toy vendors to lease out ‘toy space’. Also, b8ta provides technical assistance for all touch screen kiosks and provides store analytics to major brands renting toy space – including information on the shopper cadence (number of shoppers), how much time visitors spend there, and how visitors interacted with products.


In terms of fulfillment for their orders, Tru Kids has also partnered up with Target. When an order is placed from a kiosk, the screen automatically reroutes the user to Target.com to complete their purchase. From there, shoppers can utilise all the delivery options from Target.com to receive their purchase faster – even in as little as an hour.

Because b8ta and Target have been able to step in, the Toys ‘R’ us brand can focus more on tangible aspects – playing, demonstrating, and helping customers – to maximize the in-store experience.


While it’s still early, Toys ‘R’ Us is demonstrating they are customer-focused and that a comeback doesn’t have to be completed alone. For great reads surrounding the retail market, please read our Online and in-store – getting the balance right blog or Online Retailing – Where are we? blog.