Recently, Toys R Us announced that they will return to the United States in November this year. They are expected to open a store in Houston, Texas and Paramus, New Jersey. In September 2017, Toys R Us applied to the court for bankruptcy protection due to a debt of up to $ 5 billion, hoping to obtain financing and achieve debt restructuring, but ultimately failed to do so.
Since Toys R Us announced its bankruptcy and liquidation, the largest toy retailer has planned to make a comeback in the North American market, relying on the property rights of some of the sub-brands that have been retained and the impact of the 15% -20% toy market share in North America. Li, the return of Toys R Us this time has changed a lot compared to before.
Streamline store space and create new offline retail experience
In the planning of Toys "R" Us, each of the ten stores hoped to be opened by 2020 will reduce the area of each store from 40,000 square feet to 6,500 to 10,000 square feet. Although the impact of cost factors cannot be ignored, the move of Toys R Us aims to reduce the distance between consumers and toys in offline space and create a richer experience link in a limited space.
The new retail experience, as the development direction of the large retail industry, is committed to allowing consumers to contact and experience products at close range, and to provide high-quality services to ultimately promote consumption. Facing the market share of e-commerce platforms, the new retail experience has gradually become the best weapon for offline stores to fight back. And for the toy industry with children as its main audience, experiential sales are more attractive to children. Offline events, seminars, hands-on experience with video games, and interactive gaming experiences will all become the new sales points for Toys R Us in the North American market.
In order to maximize the advantages of offline, toy content + technology will become the main content of the user experience in the new Toys R Us store. Strive to minimize the impact of the convenience and cost-effective advantages of online purchases.
Abandon traditional concepts and open up online and offline barriers
It is worth noting that the "rebirth" toy R Us is now a combination of Tru Kids Brands and b8ta. Toys R Us is still responsible for the original part, using the power of brand + service to recall former fans offline, and b8ta is responsible for the software part including management and operation. At the same time, the most important thing is that through the establishment of such a platform, Toys R Us will try to allow online sales. This is a new attempt for Toys 'R' Us, which was once suppressed online. If the new retail experience shortens the offline space between consumers and toys, then b8ta's intervention represents a revolutionary first step for Toys R Us Online.
The division of labor with technology companies not only ensures the integrity of its original business, but also has the opportunity to develop online. Although Wal-Mart and Amazon are still the biggest rivals of Toys "R" Us, wanting "revenge" cannot be accomplished overnight.
From a global strategy point of view, Toys R Us can return to the United States with this courage. The Asian market and the European market have greatly enhanced it. In the situation where the overseas market is far from saturated, Toy R Us continues to increase the number of stores Quantity, accelerate the layout to support a larger market.
Toys R Us's return can be described as joyful and worrying. In the year when Toys R Us disappeared, toy brands such as Hasbro and Mattel had different degrees of losses during their bankruptcy and liquidation, and Wal-Mart, Amazon, and Target have quickly divided the toy market Share. After November 2019, it is not known how the pattern of American toy brands and channels will change due to the return of Toys R Us. But what is certain is that another "dramatic storm" in the toy industry is about to begin!