Trouble in toyland? Maybe not...

April 5, 2018 | Debbie Gardner
debbieg@thereminder.com

The closing of retail giant Toys R Us has produced shockwaves through the nation’s toy industry.
Reminder Publications photo by G. Michael Dobbs

LONGMEADOW – As Toys R Us moves down that oft-bumpy road through liquidation and store closures, what does that mean for consumers – and the toy industry?  It means big changes are in store, with no clear picture of how the toy buying landscape may finally shake out.

Joy Leavitt, owner of Kiddly Winks specialty toy store in Longmeadow, has been a part of the toy merchandising landscape for 32 years. During that time she’s seen plenty of change – from the types of toys kids and parents crave to the ways in which consumers shop for those toys. And though she sees challenges ahead for many manufacturers in her industry, Leavitt believes there might be brighter times coming, especially for savvy, local toy shops.

Leavitt explained the demise of Toys R Us wasn’t caused exclusively by the rise of cheaper retailers such as Amazon and Target; it was precipitated by a combination of factors. She said though Charles P. Lazarus, founder of the mega-toy store chain Toys R Us, was very much ahead of his time when he launched his warehouse-style approach to toy shopping nationwide in the early 1980s, the once cutting-edge retailer ultimately just couldn’t overcome the growing triple threat of poor management, overarching investor debt and changing consumer habits.

In the mega-retailers heyday, “There was no Wal-Mart, there was no Costco,  [and] he had a vision  – ‘I can fit in as much as I can and it will give people this incredible selection,’ and that’s how they built their success,” Leavitt said. “What happened, much to Toys R Us surprise, people started shopping differently; they were not prepared.

“It’s very sad for the toy industry to have 800 stores closing and thousands of people out of work,” she continued. And the void left by the departure of Toys R Us, Leavitt noted, will have an impact on every manufacturer from the major brands such as Lego and Mattel to the small toymakers.

“I sell Legos, and now Lego has 800 less stores to put their product in,” she observed, adding that even the major toymakers can’t depend on just today’s big-box retailers to maintain their sales numbers.

“Actually the people I feel the most sorry for are the smaller toy manufacturers,” she said. “If a small toy manufacturer could manage to get even one or two products into [Toys R Us], just think how that would build their cash flow.”

She said those small manufacturers are often already represented in stores such as hers, but may have produced different products for independent retailers and Toys R Us. The loss of the national revenue stream could ultimately hurt the small manufacturer’s ability to grow their product lines.

“I feel for them, and I fear for them,” she added.

This yawning toy void could hold a bright spot however, as Leavitt feels the departure of Toys R Us opens the door for the growth of local specialty retailers such as hers.

“I really believe … maybe … after the storm comes the rainbow. I hope this will give people the comfort to open more toy stores throughout the country,” she said. “Wouldn’t it be nice if there were toy stores like Kiddly Winks in many, many communities across the country?”

Her store, she noted, is among the more than 1,000 independent specialty toy shops in the U. S., and one of several in Western Massachusetts and Connecticut, including A to Z in Northampton and Toy Box in Amherst. These local independent toy stores,  Leavitt said, are “healthy” and doing well.

“What people are looking for in brick and mortar now, is a shopping experience,” Leavitt said. “They want to come, and they want the store to be well-lit, they want customer service, they want well-curated products, they want to have trusted products that they are handing to their children, and to know that somebody is curating the products to make it special for them.

“The sea change for lots and lots of stores – for specialty toy stores and other specialty stores – are thriving, even though they have these major competitors, because people still want to touch and feel. People still want to bring their children in and feel the delight of looking through a toy store and being able to play with toys, and having an incredibly knowledgeable staff to help them,” she added.

The key to the success for all types of local specialty retailers, she said, is community support.  

“When you shop local, the money stays in your community. It affects your police and your fire, and your schools and your roads, and people have to make a big decision about keeping their money local, if they want a vibrant community,” she said.

And for those specialty retailers, the secret to success lies in creating a welcoming shopping environment.

“People want to feel at home,” she said. “Nobody ever felt that about Toys R Us.”

Share this: